Robinhood encountered problems handling cryptocurrency trades this morning during a rise in the price of Dogecoin that sent users streaming to the app. The DownDetector website shows the interruption that starts around 9:30 a.m. ET and decreases in severity about an hour later. Robinhood confirmed that it was experiencing a “partial disruption” in crypto trading and said the issues had been resolved as of 11:15 ET.
The outcome was particularly noticeable as it came during an increase (and subsequent dip) in Dogecoin prices. Coins were priced at around $ 0.40 USD at the beginning of the day. Around 8AM ET, they peaked past $ 0.50 USD and reached as high as $ 0.60 USD near 1
Update: Crypto-trading is now fully restored. We know that some customers may have had intermittent problems in the past. We continue to monitor the situation closely and we apologize if you were affected. Contact us if you have outstanding issues. https://t.co/adhugIHVGR
– Robinhood Help (@AskRobinhood) May 4, 2021
Users were quick to express their frustrations over the app on Twitter and saw it as a repeat of the situation that happened in January when Robinhood restricted trading in lively, soaring stocks including GameStop and AMC. In the app this morning, a message told users, “We are experiencing intermittent problems with crypto trading. We are working to resolve this issue as soon as possible. Meanwhile, the price ticker on Dogecoin continued its rapid tilt up and down.
Robinhood has made it incredibly easy for anyone to become an amateur trader of stocks or cryptocurrencies. But it also meant that problems with Robinhood could affect the markets, as it may be the only route that a lot of traders who revolve around a buzzing asset should place a buy or sell order.
This is the second Dogecoin-related crypto-trading breach on Robinhood in a matter of weeks. On April 16, Robinhood wrote that enthusiasm for Dogecoin led to “occasional crypto-order errors.” At the time, the company said, “These interruptions are not acceptable to us.”
Robinhood is expected to be announced later this year.