Victor Ugochukwu · Dec 14, 2020 . 5min read
Popular Crypto Trading App Robinhood Installed Bulletproof glassdoors against Frustrated Customers
Many of its customers complain these downtime made them suffer huge losses which Robinhood appears not to really care about.
By Victor Ugochukwu · Jul 10, 2020 . 7min read
Robinhood, a popular stock and crypto trading app installs bulletproof glassdoors against possible attacks from frustrated customers. The zero commission application as it prides itself has been in the news lately. Angry customers continue to visit their Silicon Valley-based office to vent their frustrations. The New York Times reported this week.
Robinhood was established in 2013 after the Occupy Wallstreet match and has since continued to rake in users globally. Even in 2020 where the global pandemic slowed down corporations, Robinhood continues to push its dominance. It recently secured a $280 million funding in May from Sequoia Capital and others raising its valuation about $8 billion.
Coronavirus Pandemic, Huge Gains
Most business were shutdown and the few operating recorded giant losses due to the pandemic. But Robinhood saw massive signups across its platform. As the market displayed extreme volatility, users mainly those within the age of 31 signed up in droves. Many of them to scalp from the gains this flux brought about.
New York Times reported that Robinhood users traded 40 times more than some of its well-grounded industry competitors like Charles Schwab.
With its user demographics, it is clearly the preferred trading platform for millennials. Many of these users are also crypto lovers as NY Times report showed. Robinhood debuted operations in the cryptocurrency market in 2018. It allows its users to trade Bitcoin and Ethereum in select states like California and four others in the US. Traders are able to place and close trades with zero fees and no minimum account deposit or withdrawal limits.
The growing cryptocurrency community received “Robinhood Crypto” foray into cryptocurrencies with over 1 million signing up to its waitlist within 5 days.
But not all that glitters is gold
As Robinhood continued to rake in both users and gains, the story seems different for most of the young traders. Robinhood’s design comes off with a game-like interface. However, it is devoid of educational features which many of its competitors product possess. This relative lack of educational features poses real risk of massive losses for its young and experienced traders.
The risks faced by young traders on the app comes so grave such that Alex Kearns, a 20 years old college student in the US committed suicide after losing almost $730,000 in negative balance. One of such Robinhood frustrated customers may have died but there are still many of them.
Angry Customers Seeking Redress Meets Bulletproof Glass Doors
Several other frustrated customers many of whom may have signed up to the services of the trading platform during the pandemic but had to suffer outage as Robinhood experienced downtime. In march alone, it experienced 47 downtime, one of them lasting for long and painful two days for its customers.
Many of its customers complain these downtime made them suffer huge losses which Robinhood appears not to really care about. These frustrations have led to many of them showing up at the comapany’s Silicon Valley headquarters seeking redress. Robinhood has only recently installed bulletproof glassdoors perhaps to shield itself against any mishap from some of its frustrated customers who may want to cause trouble.