- The trading app Robinhood recently reported that it has strengthened its infrastructure and looking to bond with some of the clients after recent outages.
- On Monday, Robinhood notified its customers through email who were suffered by technical malfunctions that caused them to miss out on a historic market day.
- Robinhood further justified that it was experiencing technical issues that made it offline nearly two full trading days earlier in March.
The trading app Robinhood recently reported that it has strengthened its infrastructure and looking to bond with some of the clients after recent outages.
The company apologized for the inconvenience to its users
On Monday, Robinhood notified its customers through email who were suffered by technical malfunctions that caused them to miss out on a historic market day. A representative from Robinhood notified that the dollar amount would be determined on one by one matter.
The company wrote to its users that they apologize for the inconvenience. Adding to this the company said, users’ support helps to democratize finance for all. Also, an apology will not work in the area of satisfaction for their users, instead of the actions they will follow.
Robinhood further justified that the platform was going through technical issues that made it offline nearly two full trading days earlier in March. Due to which the clients missed out on the biggest one-day point gain in the Dow Jones Industrial Average in history.
After its latest funding round last year controlled by DST Global, Robinhood was valued at $7.6 billion along with the investors like New Enterprise Associates, Sequoia and Ribbit Capital are also investors.
The start-up has accompanied over 10 million traders by offering free equity, options, and cryptocurrency trading.
Robinhood’s CEO already stressed the issues saying it was due to “historic market conditions” along with a record trading volume and account signups which caused pressure on the company’s infrastructure.
The company has restructured its infrastructure
The company addressed that it has improved its infrastructure and worked on the core issues of March outages that included internal messaging system capacity which is under the scope of stress and contributed to the outage.
The engineering team has worked on strengthening and stabilizing its system to attain minimum risk of an outage and the company will try to not repeat this kind of inconvenience.
The outages did not work well on social media. Many people threatened on Twitter to pull their funds from the platform while some threatened to sue.
A federal lawsuit was filed by a client of Robinhood based in Sarasota Florida. The plaintiff alleges that Robinhood was neglectful and breached its contract by failing to provide a functioning platform due to which the traders unable to move money while stock markets rushed.
However, the company does not remark on its total number of users or total assets under management.