Robinhood crypto trading crashed during Dogecoin spike
Robinhood encountered issues processing cryptocurrency transactions this morning, during a dogecoin price spike that caused users to flock to the app. The website Drop detector shows the outage starting around 9:30 a.m. ET and diminishing in severity about an hour later. Robinhood confirmed it had suffered a “partial outage” in crypto trading and said the issues were resolved by 11:15 a.m.ET.
The outage was particularly noticeable as it occurred during a spike (and subsequent drop) in Dogecoin prices. The coins were priced around $ 0.40 at the start of the day. At around 8:00 am ET, they broke over $ 0.50 and hit $ 0.60 around 10:00 am ET.
Update: Crypto trading is now fully restored. We know that some customers may have experienced intermittent issues earlier. We will continue to monitor the situation closely and we are sorry if you have been impacted. Please contact us if you have any outstanding issues. https://t.co/adhugIHVGR
– Robinhood Help (@AskRobinhood) May 4, 2021
Users were quick 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 in booming stocks, including GameStop and AMC. In the app this morning, a message told users, “We are having intermittent issues with crypto trading. We are working to resolve this issue as soon as possible. Meanwhile, the price ticker on Dogecoin continued its rapid rise and fall.
Robinhood has made it incredibly easy for anyone to become an amateur stock or cryptocurrency trader. But it also means that issues with Robinhood can affect the markets, as this may be the only avenue that a mass of traders circling a buzzy asset should place a buy or sell order.
This is the second Dogecoin-related crypto trading outage on Robinhood in a matter of weeks. On April 16, Robinhood wrote that enthusiasm for Dogecoin led to “sporadic crypto order failures.” At the time, the company said, “These interruptions are not acceptable to us.”
Robinhood is expected to be released later this year.