This time, the asset in query is Dogecoin
: a cryptocurrency (which was created as a joke in 2013) widespread amongst Redditors and with Tesla (TSLA)
CEO Elon Musk that surged to all-time highs
Late Thursday, as Dogecoin rallied previous 25 cents for the primary time, excessive demand put “excessive strain” on Robinhood’s crypto buying and selling techniques, the corporate mentioned in a blog post
Friday. Because the platform was processing orders, “certainly one of our techniques failed, which introduced down our crypto order system.” Inside an hour, the system had recovered save for some “intermittent points,” and all the things was mounted inside two hours, Robinhood mentioned.
However extra buyers needed in, and the crypto stored climbing Friday, hitting an all-time excessive above 40 cents. That precipitated Robinhood to expertise additional “sporadic crypto order failures and delayed notification for some clients,” it mentioned.
Dogecoin is up round 468% since final Friday and greater than 6,000% because the begin of the 12 months, in keeping with CoinMarketCap.
On Friday, buying and selling quantity of the asset rose practically 300%.
The problems prompted swift backlash from Robinhood customers, reigniting considerations about retail buyers’ entry to fairness markets. In late January, Robinhood was criticized for temporarily restricting buying
of GameStop (GME)
and different “meme shares” throughout a Reddit-fueled buying and selling frenzy (although the explanation behind these restrictions was totally different from the Dogecoin points).
“Robinhood is making an attempt to gradual the #dogecoin neighborhood down [shake my head],” one person tweeted
Thursday night, together with a screenshot that gave the impression to be from the Robinhood platform saying “Dogecoin trades could not execute proper now.”
One other wrote
: “Robinhood is doing that factor once more the place they preserve regular on a regular basis folks from changing into millionaires,” one other particular person said on Twitter
of the buying and selling points.
The Dogecoin drama is simply the newest PR headache for Robinhood, which is being sued by Massachusetts securities regulators who say the platform has failed to guard its system from outages and disruptions
, amongst different claims. In response, Robinhood has defended efforts to bolster its system.
Robinhood sought to reassure clients in its Friday weblog publish, nevertheless it additionally warned that extra points may come up.
“As one of many few platforms the place clients should buy Dogecoin, our platform is correct on the middle of this surge,” Robinhood mentioned, including that it rose to the highest of the Apple App Retailer’s high free apps checklist Friday. “Our groups are working across the clock to give you the very best stage of service attainable, and as curiosity in crypto continues over the weekend, we could proceed to see intermittent service interruptions.”
The corporate mentioned customers can verify for updates on its Twitter account
and status page