American crypto trading platform Robinhood encountered some technical issues today after meme coin Dogecoin mounted approximately 100% in less than 24 hours. As per an official declaration by Robinhood, the trading platform witnessed unusual demand for its cryptocurrency services. Additionally, Dogecoin hit an ATH (all-time high) of $0.29 today as its market cap surpassed $35 billion for the first time. Robinhood declared on Twitter about an hour ago that its cryptocurrency trading services are restored completely. Moreover, the trading platform witnessed a delay in order status updates owing to huge trading activity over the platform.
Robinhood suffered an outage at 7:00 AM and was fixed approximately two hours later at 9:16 AM. During this time, various assets were surging, most significantly Dogecoin (DOGE). However, crypto space is witnessing a surge in activity, with bitcoin crossing $64,000. Some of this trading has been ignited by Coinbase’s stock listing, which has accumulated much attention. Dogecoin rebounded in value after a cryptic tweet from Elon Musk, who tweeted regarding it on various occasions. Investors have thronged to it, providing it with an 80% increase in the past 24 hours.
Robinhood Faces Criticism From Crypto Community
The platform had earlier deliberately limited DOGE trading when it was rallying, citing “overwhelming market conditions.” Robinhood, meantime, had to face criticism from the crypto community. Analysts in the Twitter universe commented that the platform didn’t want users to trade spiking assets. Some users pointed out that the DOGE page wouldn’t even load up. Still, the number of crypto users has increased by almost 600% this quarter. These events occur as it prepares to go public, which could appear in the latter half of 2021.
Furthermore, a day earlier, Robinhood published a post commenting on the Massachusetts Securities Division’s determination to revoke its license in the state. The revocation bars the company from helping millions of consumers in the area. Robinhood has registered a complaint and motion for a preliminary order to prevent the change. The company declared the decision an attempt to stop Massachusetts residents from deciding how they invest is elitist. Moreover, it describes the complaint as a reflection of old-fashioned ways of thinking. It also proceeds to encounter severe backlash over its handling of the GameStop short squeeze incident. The platform seems to have painted some lasting damage to its reputation.