THELOGICALINDIAN - Robinhood comatose while Dogecoin rallied aftermost night angering abounding barter
Another blast and a accessible Massachusetts ban spell added bad account for Robinhood.
Robinhood Suffers Outage
The Robinhood aggregation appear the affair on Twitter aftermost night. “We’re currently experiencing issues with crypto trading,” a abrupt agenda read.
It again followed up to say that crypto trading had been “partially restored.”
The posts were met with a sea of complaints from Robinhood customers. Many accused the app of acting in bad faith.
“You guys acquaintance issues every time the ‘peasants’ alpha to accomplish money huh?” a Twitter user alleged Trent Westcamp wrote. “Sure as hell don’t accept any issues demography it from everyone.”
“’Issues'” aka because DOGE is in assemblage approach we don’t appetite bodies to trade,” addition user added.
Dogecoin surged aftermost night, afterward a week-long assemblage that decidedly outperformed the blow of the cryptocurrency market. It’s up 376% in the aftermost week, trading at about $0.36 at publication.
Robinhood supports Dogecoin and targets its casework in the retail broker market. Its tagline is “democratizing accounts for all.”
Dogecoin has been a accepted cryptocurrency of best amid the retail bazaar this year, acknowledgment in no baby allotment to the ball that began with GameStop in January. Led by a accumulation of traders on the /r/wallstreetbets subreddit, retail investors memorably pumped GME stocks 1,900% as allotment of a abbreviate clasp adjoin several barrier funds. They again angry their absorption to added assets, including Dogecoin and silver.
The contest wreaked calamity beyond the markets, with some faring worse than others. Robinhood was heavily criticized amidst the anarchy afterwards it apoplectic the trading of several assets, including Dogecoin.
Following the incident, Robinhood raised $2.4 billion to awning clearinghouse accessory (Robinhood claimed that a accessory crisis was why it had to append trading at the time).
Trading App Clashes With Regulators
The acknowledgment to aftermost night’s abeyance isn’t the alone time Robinhood has appear beneath blaze this week. On Thursday, it was appear that the Massachusetts Securities Division had issued a complaint to abjure the company’s license.
In a statement, the arch of the analysis William Galvin said that Robinhood had bootless to affliction for its barter responsibly. Robinhood had affianced in “aggressively inducing and adorable trading,” including barter “with little or no advance experience,” he said.
If passed, the aphorism would anticipate Robinhood from operating in Massachusetts, potentially blocking out millions of customers.
Robinhood responded by filing a accusation to block the fiduciary aphorism that would accomplish brokers accountable for their customers’ interests. In a blog post, Robinhood said that the aphorism was an advance on its amount principles. It read:
“The complaint reflects the old way of thinking: That new, younger, and added assorted investors don’t accept a abode in the markets. By aggravating to block Robinhood, the analysis is attempting to accompany its association aback in time and reinstate the banking barriers that Robinhood was founded to breach down.”
