Robinhood has been catching a lot of heat this year. The e-trading platform that prides itself on being simple and accessible has been giving users migraines as they try to trade. Now, as users get messages that their Dogecoin (CCC:DOGE-USD) trades may not execute for the second time this week, the app is facing more scrutiny.
The investing app has been in hot water over some business decisions this year. Its first, and largest, piece of bad press comes in the midst of the GameStop (NYSE:GME) fiasco, in which users were prevented from buying GME shares on the app.
The restrictions on GameStop stock purchases frustrated users who hoped to jump onto the launching rocket. A mob has since taken on Robinhood, and it is picking up steam with Congressional representatives. Ultimately, the blocking of GME trading has lead to a full-on Congressional probe of GameStop and Robinhood. Many politicians are using this instance to protest the gamification of investing apps.
‘Dogecoin Trades May Not Execute’ Error Draws Scrutiny
This second instance came as Dogecoin hits new all-time highs. Yesterday night, users began to report being turned away from trades on the app. In trying to purchase the coin, investors were told that Dogecoin “trades may not execute.”
— Jsibetang19 (@jsibetang19) April 16, 2021
Nearly two hours later, trading was partially restored. Then, less than 12 hours later, the app faced another crypto crash preventing DOGE trades. Like the poster of the image above, the Robinhood outage is causing outcry for a Dogecoin listing on Coinbase (NASDAQ:COIN). Investors should note that Robinhood has denied intentionally restricting Dogecoin trading.
Dogecoin ownership skews greatly toward a select few. There are 20 DOGE wallets which contain over half of the total supply of the token. And of those 20, a single one of those wallets possesses a quarter of the total supply. Since nobody knows for sure who the whales are, there is a lot of speculation floating around. Now, thanks to speculation by Elon Musk, many believe that Robinhood could be the owner of the wallet.
The Robinhood outage, combined with the history of alleged market manipulation via GME, is leading to a lot of hot gossip. Be sure to keep an eye on this story.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.