A research company published a damning report about Roblox on Tuesday, accusing the company of inflating its active user counts and enabling predatory behavior on the platform. Although Hindenburg Research has a notorious reputation for short-selling companies it investigates, the report raises questions about the platform’s safety and viability. The report claims that Roblox is misleading investors by inflating user numbers and engagement metrics, with former employees supporting these allegations. Despite Roblox denying these claims and stating that Hindenburg’s financial claims are misleading, concerns about child safety on the platform have also been raised. Hindenburg accuses Roblox of compromising child safety to report growth to investors, noting a decline in trust and safety expenses and referencing disturbing usernames on the platform. While some industry experts caution against taking Hindenburg’s claims at face value due to their short-selling motivations, the report has sparked discussions about Roblox’s practices and the need for improved safety measures.
