Dogecoin mania leads to Robinhood crypto order failures
April 16, 2021, 5:16PM EDT
1 min read
A surge in popularity for Dogecoin was behind a temporary shutdown of Robinhood's crypto trading platform on Thursday night.
The cryptocurrency, a fork of Litecoin that was created as a joke and is named after a popular meme featuring a Shiba Inu, has witnessed significant price increases over the last few days. According to a blog post published Friday, one of Robinhood's systems failed after the price of Dogecoin went past $0.25 on Thursday evening. That caused the crypto order system to also temporarily shut down.
According to the post, the system was back online in about an hour, though some customers continued to encounter issues trading. The platform was fully back to normal after two hours, according to the post.
The price of Dogecoin increased to nearly $0.50 on Friday morning, which again led to problems for some customers who were trying to place crypto orders.
"These interruptions aren’t acceptable to us," the Robinhood team wrote in the blog post. "Our teams are working around the clock to provide you with the highest level of service possible, and as interest in crypto continues over the weekend, we may continue to see intermittent service interruptions."
Post-trade in capital markets today operates primarily based on provision of balance-sheet to off-set counterparty risk, either directly or indirectly, via settlement agents, CCPs and CSDs etc. The issues with this ‘hub and spoke’ model are well known, including the resulting massive duplication of data, bifurcated processes, concentration of risk and subsequent deployment of capital and resources that could be better utilized.
On this episode of The Scoop, eToro's newly appointed US lead Lule Demmissie explained why she doesn't see retail's newfound presence in the market subsiding anytime soon and how eToro plans to capitalize on growing the business across cryptocurrencies and stock trading.