Markets opened to chaos on Monday as Robinhood users flooded social media with outage complaints, unable to access trades just as stocks began moving fast.
The incident, although unrelated, coincides with Mike Novogratz’s Galaxy Digital launching retail trading app to compete against Robinhood.
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Outage Hits Robinhood — Galaxy Digital Gains on New App
Robinhood users are reporting widespread disruptions across the popular retail trading app, with outage complaints spiking sharply in the past hour.
Several users say they were unable to execute trades or access account information during market open. Notably, this is regarded as a crucial window for short-term traders.
The comment echoes frustration shared by hundreds of others across social platforms. As of press time, Robinhood’s official social media channels and status pages had not acknowledged or explained the incident.
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Shares of Robinhood (HOOD), fell about 1.25% on Monday, trading around $147.42, as users continued to report problems.
Robinhood (HOOD) Stock. Source: Google FinanceThis marks the second high-profile platform glitch in recent months, after the Base chain outage in early August. It revives questions about infrastructure resilience during peak trading periods.
The timing could not be worse for the retail-focused brokerage. While Robinhood users scrambled for clarity, a new competitor appeared to seize the spotlight.
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Galaxy Digital, the digital asset investment firm led by billionaire Mike Novogratz, saw its shares jump nearly 10% on Monday after launching GalaxyOne, a retail trading platform directly targeting Robinhood’s market.
All You Need to Know About GalaxyOne
GalaxyOne allows commission-free buying and selling of over 2,000 US stocks and ETFs, alongside cryptocurrencies like Bitcoin and Ethereum.
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The platform also features yield-bearing accounts, including 4% APY on cash deposits and an 8% yield investment note for accredited investors with a minimum stake of $25,000.
In a statement, Galaxy Digital said the move is part of its long-term effort to merge traditional and digital finance under a unified retail experience. In this space, Robinhood has long dominated.
Galaxy Digital shares have more than doubled this year, buoyed by easing regulatory pressure on digital asset firms and renewed retail appetite for crypto-linked products.
Monday’s price surge signals investor optimism that GalaxyOne could capture disillusioned Robinhood users frustrated by outages and platform constraints.
Source: https://beincrypto.com/robinhood-outage-strikes-galaxyone-launches/
