Social network Facebook Inc. (FB) has pulled down a stock trading group which comprises of traders using Robinhood trading platform and Wall Street discussion groups. The chief executive of the social platform said recent astronomical surge of the stock price of Gamestop Corp. (GME) and other stocks is the main reason for taking down the group.
Some of these other companies which have experienced astronomical surges this week include AMC Entertainment Holding Inc. (AMC) and Canada based BlackBerry Ltd. (BB).
Earlier in the week BlackBerry came out saying they don’t know the reason behind recent rally of the stock as the company hasn’t announced any development news recently.
The main attention has been on Gamestop which caused a market wrangle between hedge funds and individual investors who coordinating on social platforms including Reddit, trading communities among other portfolios.
The hedge funds were betting on Gamestop which has been struggling to even plunge further but individual traders coordinated themselves on the various platforms buying shares of the company pushing its price on a continuous increase.
The group admin of the Facebook group Allen Tran says he woke up on 28 January to find a notification that Facebook had disabled the group which had 157,000 members. According to the notification, the group violated Facebook’s policies on adult sex exploitation.
“We were first on the picking tree to be cut off because we are on Facebook, not a free platform like Reddit,” said Tran.
While responding to this development Facebok’s spokeswoman Kristen Morea said the reason as to why the group was pulled down is related to community standards but not the stock market issue.
“This group was removed for violating our Community Standards, unrelated to the ongoing stock frenzy,” said Morea. However, upon a request to elaborate further on her statement, the spokeswoman declined to explain in details.