A smartphone and a PC screen display the Robinhood Markets logo. Photo illustration by Rafael Henrique/SOPA Images/LightRocket via Getty ImagesReddit investors have shunned the idea of investing at Robinhood's upcoming IPO.Robinhood applied for an IPO Thursday. It pledged to reserve as much as 35% of its shares for retail traders.Robinhood is dead. Let them fall in lawsuits, and lose their customer base.Robinhood wants its retail customers to purchase into its initial public offering. However, some Reddit investors are promising to avoid the IPO.The trading app was launched in 2013 with the goal of "democratizing finance for all". It filed publicly for an IPO on Thursday. According to the company, it plans to make 20%-35% its shares available for retail investors via its app's IPO Access function. Robinhood stated that luring retail investors could lead to price volatility and short-selling, which could make it a meme stock play.Although the shares were made available to the public, Redditors were hesitant about investing and warned against shorting the stock.Reddit user r/Superstonk posted, "Why would anyone who frequents this sub even think about the IPO let alone want to throw away money shorting it?" Robinhood should be forgotten. Let them fall in lawsuits, and lose their customer base."Robinhood filed a warning about more than 50 lawsuits that it faces since January, when it stopped buying GameStop shares during the dramatic rally. Another Redditor cited the filing and noted that Robinhood said it could not guarantee similar events in the future.The post received 36,000 votes and was titled "If this statement isn't a sign to get rid of Robbing the Hood", Another person, with 8,000 comment karma, responded, saying, "Who would buy their IPO when there are so many lawsuits?""We apes like stock. Another said that they don't like the stock. Insider reached out to the Redditors for comment but they did not immediately reply.Many people warned against shorting stock in the r/amcstock investment thread, saying that it was a trap.One post received 3,000 votes. It said, "When Citadel sees that you are shorting them," "We will give them money to cover their shortfalls with. Do not play the game.Robinhood is a non-commission-based trading app. Much of its revenue comes through payment for order flow. This is the compensation that brokerages such as Robinhood receive by having third-party companies execute customer orders. According to the S-1 filing, five market makers made up 59% of revenue at the end March. Citadel was responsible for 27%.Redditor: "Best thing to do is ignore them and move your account," he said about the IPO.Robinhood did not immediately reply to Insider's request to comment on the story.
