Robin Hood mentionned its crypto trading service began to go haywire on Thursday at 10 p.m. – just as the price of the memes-inspired currency was starting to climb.
The disruption infuriated Robinhood users who accused the startup on social media of intentionally preventing them from profiting from the Dogecoin surge which saw the cult coin’s price quadruple in five days.
“How convenient. Robinhood always has’ problems’ when its clients are making money, ‘one person said on Twitter on Thursday, where Robinhood was a trending topic early on Friday.
“I swear to god, if Robinhood does anything to spoil my #doge profit, they’ll have a one-way trip to the sun,” another angry trader wrote.
The outage came as the price of Dogecoin climbed back to nearly 30 cents on Thursday night, more than double that of the afternoon, according to CoinDesk.
The rebound came after the crypto-focused media briefing reported on the efforts of meat stick brand Slim Jim to increase its Twitter following by engaging with Dogecoin posts.
The digital currency – which started out as a joke – surged again on Friday morning to hit a new all-time high of nearly 33 cents before narrowing the gain to trade at 30.9 cents at 8:19 a.m., up more by 5700% for the year. , Show data from CoinDesk.
Robin Hood mentionned he had “fully restored” his crypto trading functions at 11:46 p.m. Thursday. He attributed the problems to the high demand for his cryptocurrency platform.
Silicon Valley company too categorically refused allegations that it imposed restrictions on Dogecoin trading, as it did on so-called meme stocks such as GameStop and AMC Entertainment at the end of January.
“The unprecedented demand for Robinhood Crypto services has created temporary problems with crypto trading,” a Robinhood spokesperson told The Post on Friday. “That’s it, clear and simple. “
But the company’s explanations have failed to appease online criticism of the app, which is also said to have suffered outages as the coronavirus pandemic rocked global stock markets in March 2020.
“Robinhood fucks its customers again,” Twitter user identifying himself as the “president” of Reddit’s famous WallStreetBets bulletin board tweeted Thursday evening. “Absolutely ridiculous. Your name is Robinhood but take the poor… ”
Despite the outcry, Robinhood was the most popular free app in Apple’s App Store on Friday morning amid the crypto frenzy.
Robinhood has been grappling with the crypto turmoil after stepping up its clash with Massachusetts securities regulators who accused it of encouraging inexperienced investors to take unnecessary risks.
The Bay State Securities Division requested revocation of Robinhood’s broker-brokerage registration on Thursday, saying the company “continued to aggressively induce and attract trades among its clients,” according to the Wall Street Journal.
But Robinhood said he filed his own lawsuit in Massachusetts state court to prevent the regulators’ case from continuing while challenging the state fiduciary rule under which the case was brought. .
“By trying to block Robinhood, the division is trying to bring its residents back in time and restore the financial barriers that Robinhood was founded to break,” Robinhood said in a blog post Thursday.