This Live-Shopping App Made $1 Billion Last Year. Some Users Say It Works Like an Illegal Lottery: ‘I’m Totally Addicted to It’

Whatnot's staggering $1 billion in revenue last year is a testament to the app's popularity, but it also raises concerns about user behavior and the platform's business model. The app's live-shopping format, which features fast-paced auctions for trading cards, sneakers, and secondhand fashion, seems to be driving engagement to an extreme degree, with some users admitting to being "totally addicted" to it.

The comparison to an illegal lottery is alarming, and it highlights the need for regulatory scrutiny. While Whatnot may not be technically operating a lottery, the app's design does seem to encourage users to spend money quickly and impulsively. This can be particularly problematic for vulnerable individuals who may not have the financial means to sustain such spending habits. As the startup world continues to innovate and push boundaries, it's essential to consider the potential consequences of these innovations on users.

What's next to watch is how Whatnot responds to these concerns and whether regulators take notice. Will the company take steps to address user addiction and ensure that its platform is not facilitating problematic behavior? The startup's success has likely caught the attention of investors and competitors, but it also puts Whatnot in the regulatory crosshairs. As the company continues to grow, it will need to balance its business interests with user well-being and regulatory compliance.

Originally reported by entrepreneur.com. StartupNews adds analysis for business & startups readers.