Posted 1 year ago | by Ben Armstrong
Robinhood App Hits Rough Patch, Again
The major stock and cryptocurrency trading app Robinhood got trouble again after a major outage occurred last week. Robinhood’s support team tweeted on March 9 that the app encountered another technical outage on Monday, resulting in a halt to trading services.
Earlier on Monday the 9th, the firm announced:
“Trading is currently down on Robinhood and we’re investigating the issue. We’re focused on getting back up and running as soon as possible and we’ll update the status page with the latest.”
Robinhood then partially restored trading and noted that they are working to get the platform back up and running. These problems come at a time when many people are watching the markets, and may want to trade financial instruments.
According to online reports, the platform was worked partly back after just an hour of downtime. The global markets have been volatile, and some major investment banks are saying that the bull run in equities is over.
Robinhood Has Never Seen a Crisis
The Robinhood website described trading services as experiencing “degraded performance”, earlier this week, and the company said that it had identified the issue and implemented necessary measures to fix the problem.
Robinhood recently had similar technical problems. The latest outage on Monday followed one that hit last week. Cointelegraph reported there were Robinhood users who missed out on the biggest one-day point gain in the Dow Jones history due to the day-long outage on March 2.
Its users are planning a legal class action against Robinhood. As CNBC reported, there was one of Robinhood client in Florida filed a federal class lawsuit on March 4. The plaintiff, Travis Taaffe, reportedly alleges that Robinhood breached its contract by failing to “provide a functioning platform.”
A former bond broker at brokerage firm Tradition Securities & Derivatives, Jesse Eberle, who was one of the victims who suffered from the outage last week, said that Robinhood started the brokerage war when it launched zero-fee trading in 2014. Eberle, who is a Robinhood user, predicted that the company will eventually lose the battle once people will shift to more reliable platforms.
No Good Answers
There are some reports floating around that say Robinhood may compensate investors impacted by the outage on a case-by-case basis, but there is also an outline from the company’s customer agreement that Robinhood will not be responsible for outages on the platform.
The 44-page document reads:
“Although considerable effort is expended to make the Website, App and other operational and communications channels available around the clock, Robinhood does not warrant that these channels will be available and error-free every minute of the day. I agree that Robinhood will not be responsible for temporary interruptions in service due to maintenance, Website or App changes, or failures, nor shall Robinhood be liable for extended interruptions due to failures beyond our control, including but not limited to the failure of interconnecting and operating systems, computer viruses, forces of nature, labor disputes and armed conflicts.”
Regardless of the outcome for Robinhood clients, it is clear that the financial market newcomer is ill-prepared for the real-world, especially when the markets heat up.