Robinhood Outage Strikes at the Worst Possible Time
Markets opened to chaos on Monday as Robinhood customers flooded social media with outage complaints, unable to entry trades simply as shares started shifting quick.
The incident, though unrelated, coincides with Mike Novogratz’s Galaxy Digital launching retail buying and selling app to compete in opposition to Robinhood.
Outage Hits Robinhood — Galaxy Digital Gains on New App
Robinhood customers are reporting widespread disruptions throughout the popular retail trading app, with outage complaints spiking sharply in the previous hour.
Several customers say they have been unable to execute trades or entry account info throughout market open. Notably, that is thought to be a vital window for short-term merchants.
The remark echoes frustration shared by lots of of others throughout social platforms. As of press time, Robinhood’s official social media channels and standing pages had not acknowledged or defined the incident.
Shares of Robinhood (HOOD), fell about 1.25% on Monday, buying and selling round $147.42, as customers continued to report issues.
This marks the second high-profile platform glitch in current months, after the Base chain outage in early August. It revives questions on infrastructure resilience throughout peak buying and selling durations.
The timing couldn’t be worse for the retail-focused brokerage. While Robinhood users scrambled for readability, a brand new competitor appeared to grab the highlight.
Galaxy Digital, the digital asset funding agency led by billionaire Mike Novogratz, noticed its shares jump nearly 10% on Monday after launching GalaxyOne, a retail buying and selling platform instantly concentrating on Robinhood’s market.
All You Need to Know About GalaxyOne
GalaxyOne permits commission-free shopping for and promoting of over 2,000 US shares and ETFs, alongside cryptocurrencies like Bitcoin and Ethereum.
The platform additionally options yield-bearing accounts, together with 4% APY on money deposits and an 8% yield funding word for accredited buyers with a minimal stake of $25,000.
In an announcement, Galaxy Digital said the transfer is a part of its long-term effort to merge conventional and digital finance beneath a unified retail expertise. In this area, Robinhood has lengthy dominated.
Galaxy Digital shares have greater than doubled this yr, buoyed by easing regulatory stress on digital asset corporations and renewed retail urge for food for crypto-linked merchandise.
Monday’s value surge alerts investor optimism that GalaxyOne might seize disillusioned Robinhood customers annoyed by outages and platform constraints.
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