New accusations are defaming Roblox and accusing the company of inflating user counts. Additionally, it's accused of allowing predatory behavior to spread.
In Hindenburg Research report, new questions were raised in terms of user safety and the platform’s viability.
While we agree that Hindenburg Research might not have the best of reputations out there, the incident is certainly alarming. We saw the Research company take a dig at various public firms’ workings and call them out for sketch practices. But as per one expert, it’s also notorious for short-selling activities.
As per Reuters, Hindenburg did end up sinking share prices of Super Micro Computer and shares owned by leading investor Carl Icahn. But some of the claims led to major investigations including those involving the SEC.
When we look at the report’s more specific details on the matter, they’ve stated how the stock prices for Roblox are mostly related to misleading data. The stats are so misleading and can lead to dishonest figures for engagement. They do mix up daily activities with the likes of visitors.
The study indicated how Roblox is currently not telling the truth to regulators or investors and any advertisers about the real number of users. It’s inflating key metrics by nearly 25% to 42%. They’ve also shown how engagement hours are falsely misled by 100%.
Ex-Roblox workers were further quoted in this report. One of the claims spoke about the company tracking users with alt accounts. There are even specific mentions of employees quoting that they were engaged in the behavior.
A spokesperson for Roblox denied all these claims, blatantly slamming them as false and miscalculated. They denied all the public filings made by the research and spoke about how misleading they can be.
The research firm’s authors were called out as short sellers who had a particular agenda in mind to defame large organizations. Experts have mentioned in the past that such claims shouldn’t be blindly relied on.
Another report by an expert game developer found the claims to be misleading as well, adding that no bad behavior carried out by Roblox was seen here. It was likely that bots and bizarre patterns were getting documented for no good reason.
Image: Oberon Copeland @veryinformed.com / Unsplash
Read next: X Returns To Brazil After Weeks Of Debate Between Elon Musk And Local Authorities
In Hindenburg Research report, new questions were raised in terms of user safety and the platform’s viability.
While we agree that Hindenburg Research might not have the best of reputations out there, the incident is certainly alarming. We saw the Research company take a dig at various public firms’ workings and call them out for sketch practices. But as per one expert, it’s also notorious for short-selling activities.
As per Reuters, Hindenburg did end up sinking share prices of Super Micro Computer and shares owned by leading investor Carl Icahn. But some of the claims led to major investigations including those involving the SEC.
When we look at the report’s more specific details on the matter, they’ve stated how the stock prices for Roblox are mostly related to misleading data. The stats are so misleading and can lead to dishonest figures for engagement. They do mix up daily activities with the likes of visitors.
The study indicated how Roblox is currently not telling the truth to regulators or investors and any advertisers about the real number of users. It’s inflating key metrics by nearly 25% to 42%. They’ve also shown how engagement hours are falsely misled by 100%.
Ex-Roblox workers were further quoted in this report. One of the claims spoke about the company tracking users with alt accounts. There are even specific mentions of employees quoting that they were engaged in the behavior.
A spokesperson for Roblox denied all these claims, blatantly slamming them as false and miscalculated. They denied all the public filings made by the research and spoke about how misleading they can be.
The research firm’s authors were called out as short sellers who had a particular agenda in mind to defame large organizations. Experts have mentioned in the past that such claims shouldn’t be blindly relied on.
Another report by an expert game developer found the claims to be misleading as well, adding that no bad behavior carried out by Roblox was seen here. It was likely that bots and bizarre patterns were getting documented for no good reason.
Read next: X Returns To Brazil After Weeks Of Debate Between Elon Musk And Local Authorities
