Scott Galloway is very right. It is incredibly difficult to out-earn the market consistently, and virtually all day traders lose money. (like 95% or so)

it really is glorified gambling and the app is designed to treat money as if it is a sort of gaming currency. In payments there's evidence that digital currency or credit/debit cards compared to cash increase the propensity to spend. I think it's very likely that the 'cute' user interfaces of these apps increase the propensity to invest.

There should be significant more regulation here to make sure that young people don't ruin their entire financial futures or even take their lives, like the 20 year old mentioned in the article. There are no social welfare gains by this kind of gambling on the stock market (in fact there may be externalities, like the volatily Scott mentions).