Robinhood Crypto Trading Crashed While Dogecoin Going To The Moon
Robinhood ran into problems processing cryptocurrency trades this morning, because of a spike in the price of Dogecoin that sent users crowding to the app. The website DownDetector shows the outage starting around 9:30 AM ET and decreasing in severity about an hour later. Robinhood verified that it experienced a “partial outage” in crypto trading and said the issues had been fixed as of 11:15 AM ET.
The outage was especially notable since it came during a spike in Dogecoin prices. Coins were priced at around $0.40 USD at the beginning of the day. Around 8 AM ET, they shot up past $0.50 USD and reached as high as $0.60 USD near 10 AM ET.
Update: Crypto trading is now fully restored. We know some customers may have experienced intermittent issues earlier. We’ll continue to monitor the situation closely and we’re sorry if you were impacted. Please contact us if you have outstanding issues. https://t.co/adhugIHVGR
— Robinhood Help (@AskRobinhood) May 4, 2021
Users were fast to voice their frustrations with the app on Twitter, seeing it as a repeat of the situation that happened in January when Robinhood limited trading on buzzy, soaring stocks, including GameStop and AMC. In the app this morning, a message told users, “We are experiencing intermittent issues with crypto trading. We are working to fix this issue as soon as possible.” While the price ticker on Dogecoin maintained its rapid trajectory up.
Robinhood has made it very easy for anyone to become an amateur trader of stocks or cryptocurrencies. But that’s also suggested that problems with Robinhood can influence markets, since it may be the only route that a mass of traders turning a buzzy asset have to place a buy or sell.
This is the second Dogecoin-related crypto trading outage on Robinhood in a matter of weeks. On April 16th, Robinhood wrote that enthusiasm for Dogecoin led to “sporadic crypto order failures.” At the time, the company said, “These interruptions aren’t acceptable to us.”