The morning of Friday, April 16th, was filled with setbacks as Robinhood grappled with a major system outage and a subsequent annulment of its license. The outage happened after it restored Dogecoin trading as it soared in demand while the company also issued a statement that mentioned the revoking of license by the State of Massachusetts.
Robinhood Platform Suffers Outage
The system failure roughly lasted for two hours during which a remarkable spike was observed in the demands of several crypto assets, specifically Dogecoin(DOGE).
The crypto market has recently picked up significantly, as the prices of DOGE couldn’t remain unaffected as it soared in value following a customary tweet from Elon Musk, after a month’s gap. Traders jumped at the opportunity, elevating it to an all-time high of 80% in less than 24 hours – the real reason behind DOGE’s relisting on Robinhood’s platform.
Robinhood platform had in the past purposely taken down DOGE trading when it was rallying, citing “overwhelming market conditions.”
Although, the crypto exchange had actively resolved the problem but no sooner than the market picking up on the issue.
Robinhood Faces License Annulment Amid Public Backlash
Meanwhile, the crypto exchange has faced a backlash from the crypto community on Twitter. Most users complained that the DOGE page wouldn’t even load up. While others remarked that Robinhood just doesn’t want its investors to trade a spiking digital asset.
While these issues with the Robinhood platform and the public criticism are real, all these factors have not deterred the investors from flocking to trade on this platform. Troubles haven’t really stopped brewing for Robinhood even as it plans to go live in the latter half of 2021.
Robinhood remarked on the Massachusetts Securities Division’s decision to revoke its license by issuing a public post on Thursday. The revocation prevents the platform from serving millions of customers in the region. It has filed a motion for a preliminary injunction to stop the course of annulment.