Robinhood ran into problems processing cryptocurrency transactions this morning, during a spike in Dogecoin’s price that was sending users en masse to the app. The website DownDetector shows the disturbance that starts around 9:30 a.m. ET and subsides in severity about an hour later. Robinhood confirmed it had experienced a “partial failure” in the crypto trade and said the issues were resolved as of 11:15 AM ET.
The outage was especially noticeable because it came during a spike (and subsequent dip) in Dogecoin prices. Coins were priced at around $ 0.40 USD at the start of the day. They reached $ 0.50 USD around 8AM ET and hit as high as $ 0.60 USD near 10AM ET.
Update: Crypto trading has now fully recovered. We know that some customers have encountered occasional issues before. We will continue to monitor the situation closely and we are sorry if you were affected. If you have any outstanding issues, please contact us. 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 reiteration of the situation that occurred in January when Robinhood limited trading in buzzing, soaring stocks, including GameStop and AMC. In the app this morning, a message told users, “We occasionally run into issues with crypto trading. We are working to resolve this issue as soon as possible. Meanwhile, the price ticker on Dogecoin continued its rapid up and down movement.
Robinhood has made it incredibly easy for anyone to become an amateur stock or cryptocurrency trader. But that also meant that problems with Robinhood can affect markets, as it may be the only route that a mass of traders circling a vibrant asset must place a buy or sell order.
This is the second Dogecoin-related crypto trading outage on Robinhood in a few 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 go public later this year.