Robinhood faced another outage after Dogecoin prices surged 30%, setting a new record high above 50 cents.
The cryptocurrency's price surge drove Robinhood to its second Dogecoin-related outage in 2021 alone.
Robinhood's Outage: Is the Trading Platform Ready For Cryptocurrency?
On Tuesday, May 4, Robinhood admitted to experiencing issues with its cryptocurrency trading feature while users flock to take advantage of Dogecoin's price surge.
According to DownDetector, the outage started at 9:21 a.m. ET and eased about an hour later.
We’re currently experiencing issues with crypto trading. We're working to resolve this as soon as possible. For the latest updates, check https://t.co/ZS733G6N1J— Robinhood Help (@AskRobinhood) May 4, 2021
Since the outage is exclusive only to Robinhood's cryptocurrency trading feature, users could still participate in options, equities, and fractional equities trading.
Understandably, users are quick to express their disappointment over the incident, especially that this is Robinhood's second Dogecoin-related outage in less than a month.
Some Twitter users even alleged the trading platform of restricting its users, replicating its move during Gamestop and AMC's price surge in January 2021.
Despite the trading platform's negative image following the succeeding controversial outages in 2021, Robinhood found itself facing a 458% spike in customers who engage in cryptocurrency trading.
Dogecoin Price Surge Comes Ahead of Elon Musk's 'Saturday Night Live' Gig
Dogecoin reaches an all-time high price on Tuesday, May 4, after it spiked past $0.50, reaching as high as $0.60 at around 10 a.m. ET.
According to MarketWatch's report, Dogecoin's price had soared 10,694% in 2021 alone.
Dogecoin's price rally is attributed to billionaires Elon Musk and Mark Cuban and rap icon Snoop Dogg, who all tweeted about the cryptocurrency multiple times.
Prior to the price surge, Cuban posted a series of tweets on May 3, promoting cryptocurrencies, including Bitcoin and Ethereum.
Crypto succeeds when it's a more productive implementation of it's competition. BTC/Gold are both financial religions. BTC is easy to trade/store/create with no delivery issues. BTC also enables transfer of value locally and globally . Gold is a hassle. Just look at Ft Knox— Mark Cuban (@mcuban) May 2, 2021
Musk had also been hyping Dogecoin in the past, as the tech CEO named himself "The Dogefather" for his May 8 appearance on Saturday Night Live.
In addition, Dogecoin's price rally is also related to the crypto exchange's move to add support for the meme-based cryptocurrency.
Lastly, Dogecoin's fans declared Apr. 20 as "Doge Day" in a bid to push its price to $1 from $0.39.
Dogecoin: A Quick History
Dogecoin, which launched in 2013, started as a joke based on the widely popular meme that features an image of a Shiba Inu.
It uses a technology derived from Litecoin, and its low price is attributed to its unlimited supply.
The meme-based coin's popularity picked up in late 2017 when the cryptocurrency bubble significantly drove the prices of many coins up.
Dogecoin found itself in another round of price surge in 2019 when Binance listed the cryptocurrency, surging its price up 30%.
Around this time, Musk tweeted its support for the meme-based cryptocurrency and had been known as a fan since.
Dogecoin might be my fav cryptocurrency. It’s pretty cool.— Elon Musk (@elonmusk) April 2, 2019
This article is owned by Tech Times
Written by Leigh Mercer