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Robinhood literally crashed because of a Dogecoin spike

Dogecoin spiked in value. So Robinhood crashed

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The logo for the Robinhood app on a smartphone in New York.

The logo for the Robinhood app is pictured on a smartphone in New York on Thursday, Dec. 17, 2020.

Patrick Sison, Associated Press

Robinhood — the trading app where people can buy and sell cryptocurrency — experienced a crash during a Dogecoin spike on Tuesday morning, The Verge reports.

Did Robinhood crash because of Dogecoin?

Dogecoin experienced a massive spike on Tuesday, hitting a record $0.53 (the cryptocurrency was worth as low as $0.005 in January 2021). Users flocked to Robinhood to start buying or selling their investment in the cryptocurrency, according to The Verge.

Data from DownDetecter show that the Robinhood app started to crash around 7:30 a.m. MDT. One hour later, more crashes were reported for the app.

Robinhood later confirmed that it experienced a “partial outage” in the crypto trading sector of its app. But the app said that there had been fixes around 9:11 a.m. MDT.

  • “Crypto trading is now fully restored. We know some customers may have experienced intermittent issues earlier. We’ll continue to monitor the situation closely and we’re sorry if you were impacted. Please contact us if you have outstanding issues,” Robinhood said in a statement.

Are apps like Robinhood like gambling?

Earlier this week, investor Warren Buffett said that stock-trading apps like Robinhood are similar to wagering money at the casino, as I wrote for the Deseret News. These apps have made it easier to invest, which leads to an experience like playing at a slot machine.

Buffett told CNBC that the Robinhood app has “become a very significant part of the casino aspect, the casino group of people, that has joined into the stock market in the last year or year and a half.”