Robinhood, the zero-fee disrupter of the US brokerage industry, is facing technical issues with its trading platform due to heightened cryptocurrency trading volumes on Friday.
The platform first officially reported the glitch at 07:19 pm (PDT). “We’re currently experiencing issues with crypto trading due to unprecedented volumes and are working to resolve them as soon as possible,” Robinhood informed its clients.
Though the trading platform already identified the technical issue, a resolution is still waiting. Meanwhile, it updated that because of the heightened trading volumes, “some crypto trades may not execute right now.”
At the Center of All Controversies
Robinhood is known for offering commission-free stockbroking services, which even pushed the major players in the industry to ditch their legacy business model and offer zero-fee trading services. The platform was in the limelight during the notorious GameStop saga and received a lot of heat from its retail userbase for suspending trades with the volatile stock.
The no-fee app faces ongoing issues with crypto trades, only hours after resolving similar technical issues due to excessive trading volume.
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The crypto trading surge is mostly created by the unprecedented surge in the demand for Dogecoin, a cryptocurrency based on an internet meme. According to CoinMarketCap, DOGE tripled its value in the last 24 hours and gained almost 550 percent in a week. The rise of the cryptocurrency was boosted by its endorsements by billionaire Elon Musk and a line of celebrities, including adult performers.
Meanwhile, angry traders are slamming the platform on social media for not allowing Dogecoin purchases.
Every time there is a huge sell off this message comes up! It’s so obvious Robinhood AND PARTNERS are getting the first jab at selling high and then buying back in on the dip. After it goes up again the message goes away and you can buy… #doge pic.twitter.com/NKChTX2bpE
— PerkyPerk (@PerkulatorTime) April 16, 2021
Robinhood Crypto is currently offering trading services with several digital currencies, including Bitcoin, BCH, Bitcoin SV, Dogecoin, Ethereum, Ethereum Classic and Litecoin. It recently reported that more than 9.5 million of its clients traded cryptocurrencies in Q1 of 2021.