Robinhood to Provide Credit to Customers Affected by Outages in March

Cryptocurrency companies have always claimed that customers were the most important cogs in the digital asset ecosystem. This mantra has been the sole crux in organizations ensuring strong customer satisfaction and feedback program.

Robinhood was the latest company to establish a customer partnership when the startup started providing credit to some of the customers impacted by the outages during the trading period. The organization came under fire as a result of several outages that blocked customers during crucial market movements.

Robinhood was hit hard this month after several customers complained that they had been locked off trading during peak market hours. Many of the concerns were about the glitches that caused investors to miss out on the windows on a historic trading day. The cryptocurrency wallet decided to roll out its new features to satiate customers who were affected as well as to build a stronger bond with the community. In an official release, Robinhood said:

“We’d lie to start with the apology you deserve: We’re sorry for the recent outage on our platform. Your support is what helps us democratize finance for all, and we owe it to you to do better. An apology alone won’t rebuild your trust in us. Instead, we hope our actions will.”

Although no amount has been discussed yet, Robinhood revealed that the payments will be conducted on a case by case basis. The wallet was also bashed on social media for the glitch that caused some people to be locked out for two days. It was not a typical shut down as users missed one of the biggest one-day point gain in the Dow Jones Industrial Average in history.

According to the Robinhood honchos, the application had crashed because of the momentum of the market. The wallet witnessed thousands of instant signups and a massive trade volume increase in a very short span of time. The resulting stress caused the wallet’s infrastructure to break down and hence shut out users. Robinhood’s engineering team revealed that they had strengthened and stabilized the wallet’s architecture even further.

It is understandable to see why Robinhood took this route after the meltdown that users had on Twitter during the outages. Several users threatened to pull their funds from the platform while others wanted to sue the cryptocurrency wallet company. Travis Taaffe was one of the Robinhood users who took it upon himself to file a lawsuit against Robinhood on behalf of him and several others.

According to the lawsuit, Robinhood was negligent about its services and caused great financial harm to its users. Mr. Taafe added in the lawsuit that a lot of traders were left in the surge as they were not able to move money during the price hike. The lawsuit has apparently not hurt the company as Robinhood reported historic growth in March. Robinhood spokespersons said that the average trading volume had increased by 3x since the last quarter.

Robinhood was also in the news recently when the company was valued at $7.6 billion. The surge in valuation came after multiple rounds of investments that bestowed confidence upon the company. Sources claimed that the 10 million-odd customers that Robinhood brought into the ecosystem have played a crucial role in giving the industry a millennial edge.