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TL;DR: Roblox was initially released in 2006, offering younger gamers a platform to freely create and share new experiences. The service boasts hundreds of millions of active monthly users, though these figures are allegedly inflated to impress Wall Street and attract potential investors.
A new report by Hindenburg Research levels serious accusations against Roblox Corporation. The "activist" investment and research firm portrays the gaming company as deceptive, accusing it of misleading investors and exposing young gamers to a "hellscape" rife with pedophiles and sexual predators.
Roblox claims to have 79.5 million daily active users, but according to Hindenburg's findings, this figure may be inflated by 25 to 42 percent. An unnamed technical consultant monitored 7,200 Roblox "games" across 2.1 million servers, concluding that Roblox's official numbers don't align with reality. The report suggests that the company is unable to detect when users register multiple accounts, which may result in a large portion of its user base being comprised of bot networks, primarily operating out of countries like Vietnam.
Vietnam, in particular, is allegedly responsible for a "significant" inflation of user numbers and engagement, according to a former Roblox data scientist who spoke to Hindenburg Research. Furthermore, the platform is reportedly failing to adequately screen for dangerous individuals. The report highlights a concerning prevalence of pedophiles on Roblox, including in popular groups like "Adult Studios," where thousands of sexual predators are allegedly trading child sexual abuse material.
Roblox has faced accusations of exploiting children multiple times in the past, either by monetizing their creative efforts or by facilitating the sharing of child abuse material. Hindenburg Research claims that the company, founded by David Baszucki and Erik Cassel, has fully embraced the Silicon Valley mindset of "growth at all costs," allegedly providing misleading numbers and hosting illicit content to maximize profits.
Unsurprisingly, Roblox swiftly responded to Hindenburg's damning report. The company rejected the accusations, emphasizing that "safety and civility have been foundational to Roblox since the company's inception nearly two decades ago." Roblox maintains that tens of millions of users, of all ages, safely use the platform every day, and any content or behavior that violates company standards is dealt with "extremely seriously."
Roblox also refuted Hindenburg's financial claims, calling them misleading. According to Roblox, Hindenburg represents short sellers with an agenda that opposes the company's business model and results. The company acknowledges that its Daily Active User numbers reflect account activity, not individual users. While bots and unauthorized access can occasionally inflate DAU numbers, Roblox confirms that measures are in place to minimize such fraudulent activity.