Imagine a virtual world where you can attend live concerts, shop at virtual Ikea stores or even beg on the streets. Sounds cool, right? (Maybe not the begging bit.)
This is what the Roblox multiverse promises to deliver. But behind the cool factor lies a growing concern — especially for kids.
Millions of children are hooked on this platform, and unfortunately, it might be doing more harm than good. Recently, Hindenburg Research took a short position against Roblox, accusing the company of inflating its user numbers and even allowing child predators to operate within its virtual spaces.
CEO David Baszucki, once known as “builderman” on the platform, began his journey with humble 2D physics simulations, long before edtech had its moment. After starting out building an educational tool, he has transformed into the founder of a massive virtual playground, where children can easily spend hours, often in ways that parents find troubling.
But parents trying to telling their kids that Roblox isn’t good for their mental health, or setting up parental controls risk being labeled as “boomers.” It’s a tough battle.
History of Roblox
From its early days as “DynaBlocks” (before being rebranded as Roblox — “robots” + “blocks”), builderman has managed to grow its daily user base from a mere 10,000 in 2006 to 68.4 million today.
Along the way, the platform has invented its own currency, shopping malls, and millions of user-generated games like “Adopt Me”, “Line to Heaven” and “Eat Blobs to Grow Massive.”
Not one for the FX traders though: $5 gets you 400 Robux. The upside: a stylish cardigan or jacket costs just 100 Robux, or 80 USD cents. The downside: it’s NOT REAL.
A Nasdaq company but…
Not gonna rant no more. Roblox is now a Nasdaq 100 company with a $27 billion market value. Growing revenue at 20 clips every year, investors are betting on the technology to have a wider reach. What’s more, there’s no other equivalent to Roblox in that space.
Analysts see the stock rising another 12% too. But, as we discussed earlier, when Hindenburg has its eyes on a company, it may not be wise to buy its shares.
TT (That’s ‘till tomorrow’ — a slang used on Roblox to say you’re signing off from a game).
- (With inputs from parents of Robloxers)
