Markets opened to chaos on Monday as Robinhood customers flooded social media with outage complaints, unable to entry trades simply as shares started transferring quick.
The incident, though unrelated, coincides with Mike Novogratz’s Galaxy Digital launching retail buying and selling app to compete towards Robinhood.
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Outage Hits Robinhood — Galaxy Digital Positive factors on New App
Robinhood customers are reporting widespread disruptions throughout the favored retail buying and selling app, with outage complaints spiking sharply up to now hour.
A number of customers say they have been unable to execute trades or entry account data throughout market open. Notably, that is considered a vital window for short-term merchants.
The remark echoes frustration shared by tons 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.
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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. Whereas Robinhood customers scrambled for readability, a brand new competitor appeared to grab the highlight.
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Galaxy Digital, the digital asset funding agency led by billionaire Mike Novogratz, noticed its shares bounce practically 10% on Monday after launching GalaxyOne, a retail buying and selling platform straight concentrating on Robinhood’s market.
All You Must 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.
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The platform additionally options yield-bearing accounts, together with 4% APY on money deposits and an 8% yield funding notice for accredited traders with a minimal stake of $25,000.
In a press release, Galaxy Digital mentioned the transfer is a part of its long-term effort to merge conventional and digital finance below a unified retail expertise. On this area, Robinhood has lengthy dominated.
Galaxy Digital shares have greater than doubled this 12 months, buoyed by easing regulatory strain on digital asset companies and renewed retail urge for food for crypto-linked merchandise.
Monday’s value surge alerts investor optimism that GalaxyOne might seize disillusioned Robinhood customers pissed off by outages and platform constraints.