Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $1,165 trillion. Bitcoin is up by over 2% after a rollercoaster of a week. Ethereum decreased by almost 1% over the past seven days. XRP gained more than 15% in value this week. Almost all altcoins are trading in the green, with very few exceptions. The DeFi sector decreased the total value of protocols…
Robinhood Crypto Exchange App Suffers an Abrupt Outage
Today, Robinhood announced that their platform had stopped functioning correctly, but they are working to resolve the issue as early as possible. A commission-free mobile application allows people to invest in publicly listed companies and other listed funds on U.S. exchanges.
Users Face a Hard Time Due to Functionality Issues
Robinhood announced the feedback and complaints from their customers about poor functionalities in the morning hours. About 61% of their customers complained about lagging and poor user interactions with Robinhood’s official website.
Mobile brokerage features reported the second-highest number of complaints, as shown by the 25% of total reports. Additionally, about 14% of Robinhood’s customers reported issues with trading features on the platform.
Why is Robinhood Down?
The recent event is not the first time that this trading giant has experienced downtime this year. Most of the operational issues of Robinhood’s website and official app happen when the markets rise or fall sharply.
Today the values of BTC have risen by 6%, while ETH has also gained by almost 12 %. The whole market is also up by around 8%, which has sent many people flocking to exchange platforms for making flash trades. This rise in number of customers on Robinhood’s website made its systems cripple and result in an outage.
Susceptibility to Outages Becomes Overwhelming for Robinhood
It is not the first-ever outage for Robinhood. This month alone, the exchange has experienced three outages. The first outage of this month happened on the second day. The other one was on the fourteenth day, and finally, the most recent one struck them today.
Some of these outages come with a heavy price for Robinhood due to high compensation demands from their customers. For example, in March 2020, Robinhood confessed that they understood that the cause of their outage was stress in their systems due to struggle with unprecedented load.
The outage spanned the whole of its first day and a better part of its second day, which led to demands for compensation from their clients. Robinhood decided to honor their requests by attending to each case singly and compensating them fairly. However, Robinhood seems to have learned its lesson, and by now, its site is fully operational as per their most recent blog post.
How is Crypto Exchange Platforms Fairing?
In March 2021, Binance and Coinbase were both hit by an outage on the same day. This outage was so fierce that it stripped $1trillion off the crypto markets. The value of BTC plummeted by the highest rate since 2013. The statistic shows that if leading exchanges do not find a way to deal with the outages, they are prepping for doomsday. Their fall might also lead to the fall of cryptocurrencies.