Robinhood traders hit the investment app after its cryptocurrency platform suffered a major disruption right in the middle of the Dogecoin record rally.
Robinhood said its cryptocurrency trading service began trading until 10pm on Thursday – just as the price of the meme-inspired currency began to fall.
The outage angered Robinhood users who accused the startup on social media of intentionally blocking them from collecting Dogecoin growth, which saw the price of the cult currency quadruple in about five days.
“How convenient. Robinhood always has ‘problems’ when their customers make money,” says one person. he said on Twitter on Thursday, where Robinhood was a trending topic early Friday.
“I swear to God, if Robinhood does anything to confuse his #doge profit, I’ll get a one-way trip to the sun,” said another irritated trader. wrote.
The outage came as Dogecoin’s price rose nearly 30 cents late Thursday, more than double the spot where it traded that afternoon, according to CoinDesk.
The rejection came after the cryptographic press reported on the effort of the meat brand Slim Jim to increase its following on Twitter by hiring Dogecoin posts.
The digital currency – which started as a joke – continued to jump to a new record high of almost 33 cents on Friday morning before valuing trading gains at 30.9 cents starting at 8:19, raising it by more than 5,700 percent per year, CoinDesk data show.
Robinhood said had “completely restored” its cryptocurrency trading functions by 11:46 p.m. He blamed the problems of high demand for his cryptocurrency platform.
The Silicon Valley company, too categorically denied allegations that it restricted Dogecoin trading, as did so-called meme stocks such as GameStop and AMC Entertainment in late January.
“The unprecedented demand for Robinhood encryption services has created temporary problems with crypto trading,” a Robinhood spokesman told The Post Friday. “That’s simple and straightforward.”
But the company’s explanations did not reassure online criticism of the app, which also appears to have been disrupted as the coronavirus pandemic hit global stock markets in March 2020.
“Robinhood cheats on its customers again”, a Twitter user identifying himself as the “president” of the famous WallStreetBets message board on Reddit posted on Twitter late Thursday. “It simply came to our notice then. You call yourself Robinhood, but take from the poor … ”
Despite the shouts, Robinhood was the most popular free app in the Apple App Store on Friday morning, amid the cryptographic frenzy.
Robinhood has faced cryptocurrency turmoil after escalating its conflict with Massachusetts regulators, who have accused it of encouraging inexperienced investors to take unnecessary risks.
The Bay State Securities Division called for the revocation of the registration of broker-dealer Robinhood on Thursday, saying that the company “continued a model of induction and aggressive attraction of trading between its clients,” according to The Wall Street Journal.
But Robinhood said it has filed its own lawsuit in Massachusetts state court to block the regulators’ lawsuit while challenging the state fiduciary rule on which the case was filed.
“In an attempt 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 on Thursday.