
Hidden Cost Of 'Free' Apps: How Your Data And Decisions Are Monetized
Let's be honest: 'Free' apps such as Robinhood and TikTok are everywhere, shouting out that you can get wealthy or be entertained without spending a nickel. These slick devices and mood-altering effects have fixed tens of millions of people in their shadow. But here's the truth about free stuff: nothing is free. They also profit from your data, push you towards riskier bets and costing people thousands of dollars in losses and nothing to show for it.
Whether you chalk it up to gamified trading and influencer hype, or the endless email promotions, the price of these platforms is finally sinking into the consumer psyche. Robinhood had burst on the scene in 2013, with a sales pitch about commission-free trading and a mission to 'democratize' wealth. The infinite scroll of short, addictive videos on TikTok made it a global phenomenon. Both apps are free to download and use and do not require a subscription. But if you are not paying, then you are the product.
Robinhood made $331 million in 2021 from 'payment for order flow,' a way that market makers pay to process your trades, in order to nudge you to trade more, whether or not it's a bad call. ByteDance, the Chinese company that owns TikTok, has been accused of sharing user data with advertisers that could be used to employ supremely targeted ads. A 2023 report by the Center for Digital Democracy put TikTok's data driven ad revenue above $15 billion a year.
These apps don't just accumulate information; they drown you in it. Robinhood's app is designed to feel like a game, complete with bursts of confetti when you make a trade and push notifications that encourage you to keep up with the Joneses. It's no wonder many of its users were participating in dangerous options trading as of 2022, according to FINRA, and the vast majority having zero investing experience or knowledge.
TikTok's algorithm also ensures you keep scrolling by serving up more of what hooks you, be that videos that tout 'meme stocks' such as GameStop or AMC. Social influencers are pushing these stocks which results in a buying frenzy. That was also true in 2021, when investor hype on Reddit and TikTok sent the share price of GameStop soaring before the price tumbled and retail investors got 'left holding the bag.'
The problem: real people are the ones paying the price. According to a 2021 CNBC article, Dogecoin's 26,000% surge in six months was driven partly by teens and young adults on TikTok and Reddit, many of whom used apps like Robinhood to trade. The article highlighted that inexperienced investors, often in their late teens to early twenties, were drawn to the 'get rich quick' scheme, with some losing significant sums when the market corrected.
It's important for investors to understand that the algorithms on these platforms privilege what benefits them, not what's best for you. The S.E.C. fined Robinhood $70 million in 2023 for confusingly documenting risks to users. TikTok's been sued over privacy problems, but both just keep getting bigger.
Key Takeaway: "Free" apps come with a catch. They profit from your data, attention, and sometimes your finances. Be cautious and always conduct thorough, independent research before investing, and don't let app nudges or influencer hype drive your decisions.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
12 minutes ago
- Yahoo
AM Best Assigns Credit Ratings to HDI Global UK Limited
AMSTERDAM, July 24, 2025--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of "aa-" (Superior) to HDI Global UK Limited (HDI Global UK) (United Kingdom), an entity ultimately owned by HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI V.a.G.). The outlook assigned to these Credit Ratings (ratings) is stable. The ratings reflect HDI Global UK's inclusion as a member of the lead rating unit of HDI V.a.G., which has a balance sheet strength that AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management. HDI Global UK is strategically important to HDI V.a.G. as its carrier for writing delegated authority business (retail and small and medium-sized enterprises, as well as liability, motor and high net worth business in the UK. HDI Global UK was established in 2024, as a UK-incorporated subsidiary of HDI Global SE. The company is identified easily as part of HDI V.a.G., carrying the same brand. Given the strategic importance of the company to HDI V.a.G., AM Best expects that sufficient support will be provided promptly by the HDI V.a.G. group, should it be needed. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Andrea Porta Senior Financial Analyst +31 20 808 1700 Angela Yeo Senior Director, Analytics +31 20 808 1712 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318


Time Business News
14 minutes ago
- Time Business News
EXCLUSIVE: Elon Musk Reportedly Set to Rebrand Vine as 'VIX,' an AI-Powered Creative Platform
Sources claim Musk is preparing to relaunch Vine under the name 'VIX,' blending nostalgia with cutting-edge AI through xAI. July 24, 2025 — Multiple sources close to the matter suggest that Elon Musk is planning a full rebrand of the iconic short-form video app Vine. The new name? VIX — a compact, futuristic title said to represent a fusion of Vine, Intelligence, and Musk's overarching X ecosystem. According to individuals familiar with early-stage development, VIX will not simply be a Vine reboot, but a radical reinvention of the platform using AI infrastructure developed by xAI, Musk's artificial intelligence company. 'This isn't Vine 2.0. It's something far more ambitious — a smart content engine that understands trends, tone, and timing before the user even hits publish,' one source with knowledge of the internal roadmap claimed. What is VIX? VIX is reportedly being positioned as a neural-enhanced short video platform, optimized for both creation and consumption. Key elements in early internal prototypes include: AI-assisted editing : Videos are automatically trimmed, looped, and enhanced using generative models. : Videos are automatically trimmed, looped, and enhanced using generative models. Real-time content suggestion : Users receive live creative prompts based on trending formats, keywords, or user behavior. : Users receive live creative prompts based on trending formats, keywords, or user behavior. Emotionally adaptive feeds : For users who opt in, content curation may eventually respond to facial microexpressions or sentiment indicators. : For users who opt in, content curation may eventually respond to facial microexpressions or sentiment indicators. Prompt-based clip generation: Early experiments allow users to describe a video idea via text, and have AI assist in generating or remixing visual content. One internal engineer described VIX as a combination of 'TikTok's immediacy with the intelligence of a neural co-pilot.' Strategic Branding: VIX in the X Ecosystem The name VIX is rumored to stand for Vine + Intelligence + X, aligning with Musk's growing suite of unified brands, including X (formerly Twitter), xAI, and Insiders point to the simplicity and symmetry of the name as intentional. Unlike the nostalgia-heavy 'Vine 2.0' brand floated in past years, VIX aims to signal evolution — from manual meme-making to smart, self-aware media. Recent activity around domain names like and as well as trademark applications tied to 'visual intelligence networks,' further support the speculation. A Shift Toward Neural Entertainment While Musk has made only vague comments when asked about reviving Vine, he has alluded in public remarks and posts on X to a future where content becomes 'real-time intelligent, not just reactive.' This aligns with xAI's stated mission to build artificial general intelligence that can be integrated across entertainment, education, and communications — areas where short-form video sits at the center. A confidential internal presentation, tentatively titled 'Project Loopback,' reportedly outlines a vision for intelligent content loops: short videos that learn, evolve, and adapt through feedback, prompts, and collective behavior. What Comes Next There is no official timeline for a public announcement, but several X engineers have hinted at a potential limited-access preview in late 2025, with a full rollout targeted for 2026. As with most Elon Musk projects, confirmation may come suddenly — or not at all. But if these early signals are accurate, VIX could represent the most significant evolution of short-form media since Vine's original debut in 2013. Developing story. Further updates will follow as more information emerges. TIME BUSINESS NEWS


Bloomberg
14 minutes ago
- Bloomberg
Tesla Braces for ‘Rough' Quarters, While Alphabet is Boosted by AI
Wedbush Securities' Dan Ives discusses earnings from Alphabet and Tesla, and his view that Apple needs to make aggressive AI moves to catch up with Google. Elon Musk warned of difficult times ahead for Tesla, saying the company will be in a transition period for the next year or more. Musk said Tesla will probably have a few rough quarters, but expects the company's economics to be very compelling by the end of next year once autonomy is achieved at scale. Tesla earnings missed estimates, with revenue falling 12% to $22.5 billion, the steepest decline since 2012. Alphabet Inc. said demand for artificial intelligence products boosted quarterly sales, and now requires an extreme increase in capital spending. Chief Executive Officer Sundar Pichai said "Our AI infrastructure investments are crucial to meeting the growth in demand from cloud customers." Ives speaks with Tom Keene and Paul Sweeney on Bloomberg Surveillance. (Source: Bloomberg)