Robinhood Crypto Trading Services Crash Due To Unprecedented Demand

The Robinhood crypto trading services crashed today again because of high demand while DOGE pumped to a new ATH so let’s read more in today’s crypto news.

The Robinhood crypto trading services went down again due to “unprecedented” trading volumes which is the second outage in the past 12 hours. The trading services on the brokerage app went down due to the high trading volumes as the company announced this morning. The outage was identified on the Robinhood site status page as the company posted on Twitter saying that the trading has been “restored for most customers.”

This was the second crypto trading outage in less than 12 hours which could have something to do with the DOGE price surge over the past few days. Robinhood is only one of the few US-based exchanges that allow DOGE trading while Coinbase on the other hand, doesn’t even list the token. The price of Dogecoin is now at $0.40 per coin with a 24-hour trading volume of over $63 billion which is higher than Tether and Bitcoin together.

DOGE is now the fifth most valuable cryptocurrency especially after Tesla’s CEO Elon Musk, pumped the coin again with a tweet. Robinhood had a moment in the spotlight earlier this year during the GameStop short squeeze, the popular platform among retail traders, and was also big among the Reddit message board r/WallStreetBets whose moderators started allowing discussion about DOGE. The trading app has been through a lot of outages at crucial moments like during March last year in the first waves of the COVId-struck market crashes.

The Massachusetts state regulator is seeking to revoke the broker-dealer license of Robinhood in the state. William Galvin who is the head of the state’s securities division who said in an administrative complaint that the company has a “Continued pattern of aggressively inducing and enticing trading among its customers including Massachusetts customers with little or no investment experience.”

The new filing is a follow-up to a complaint that was filed by Galvin’s office in 2020 alleging that Robinhood’s marketing illegally targeted investors that have almost no experience. The state pointed to the recent activity of the company including the promotion that provides customers with cash rewards based on the deposits as proof of a “firm culture which has not changed.”