Yesterday and today, the enthusiasm for cryptocurrency jokes from Dogecoin overwhelmed Robinhood, leading to “sporadic crypto order failures and delayed notifications for some customers”, Robinhood wrote in a blog post
“These interruptions are not acceptable to us,” Robinhood wrote in his post. “We believe we are the most intuitive crypto platform for Dogecoin merchants and we are proud to be a top choice for this community.”
Robinhood has a history of just this kind of whoopsie. In March 2020, there were three major outages that Robinhood said were due to “stress on our infrastructureAnd infamously, in January Robinhood restricted transactions on GameStop, irritating the entire internet and dragging itself before Congress for not planning anything approaching Gamestonk’s scale.
See, the app is very nice and easy to use, but if it fails most often crucial buy and sell periods, will users stick to them? Whether you make money from your Dogecoin trading matters more than how much fun the app is. By the way, there is the now public Coinbase platform to trade cryptocurrency anyway.
The Robinhood post, frustratingly, does not go into the technicalities that could have let users know how serious the outage was, or why it occurred. I’ve emailed Robinhood to request some of these details, and will update if the company responds.
Finally, I have to beg again for the Robinhood S-1, which I need to live. I must know what the risk factors section looks like and whether these types of failures are significant enough for the company to be listed there.