GameStop (gamestopeth.io)

GameStop (gamestop-coin.vip)

rocky

GmeStop

Robinhood has once again found itself in the eye of a financial storm. This time around, it’s the huge downturn that kicked off on August 5th, affecting global markets at large, with Robinhood feeling the brunt of it.
This recent upheaval saw the Japanese Nikkei 225 index plummet by over 12%, marking its largest one-day drop ever. This was a full-scale meltdown initiated by a mix of rising U.S. economic concerns and Japan’s interest rate hike to fight inflation.&nbsp;
These factors did a number on the yen, beefing it up against the dollar and hammering Japanese export-heavy stocks.
<h3 id="b-market-reaction-and-robinhood-s-rocky-ride-b">Market reaction and Robinhood’s rocky ride</h3>
Stateside, the reaction was equally grim. The Dow Jones nosedived by 1,034 points, while the Nasdaq and S&amp;P 500 weren’t left out of the bloodbath, dropping 3.4% and 4%, respectively.&nbsp;
The tech sector, once the darling of Wall Street, found itself on shaky ground following a series of underwhelming earnings reports and increasing doubts about the AI boom.
Amid this chaos, Robinhood hit a major snag. It had to slam the brakes on trading during this meltdown. This wasn’t a new scene for them. They’ve had their share of market mayhem back in 2022 with the whole GameStop saga.&nbsp;
This time, they posted a notice saying trading was off the table due to the market’s wild swings, though orders for future sessions were still on.
<h3 id="b-impact-hits-hard-b">Impact hits hard</h3>
On that fateful day, Robinhood’s stocks tumbled by 8.2%, mirroring the dismal trend seen across the markets.&nbsp;
A huge chunk of this drop was thanks to Bitcoin’s slide, which saw about 20% of its value wiped out. Robinhood halting trade has triggered controversies regarding its transparency and fairness in the past.
In a post on X, Robinhood’s support team said that trading would be on hold from midnight to 8 AM UTC, following what they called BOATs – a term used for automatic trading halts triggered by extreme volatility.&nbsp;
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Robinhood 24 Hour Market's execution venue, Blue Ocean ATS (BOATs), has suspended overnight trading for tonight. 24 Hour Market orders that are open as of approx. 8 PM ET will be routed for execution starting at approx. 4 AM ET tomorrow. You may cancel your order at any time, and…
 — Robinhood Help (@AskRobinhood) <a href="https://twitter.com/AskRobinhood/status/1820600734259519577?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">August 5, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
They <a href="https://x.com/AskRobinhood/status/1820600734259519577" rel="noopener noreferrer nofollow" target="_blank">assured</a> users that while they couldn’t trade, they could still cancel or place new orders for the upcoming sessions.
The global economy wasn’t doing anyone any favors either. With the U.S. possibly heading for a slowdown, and the Fed potentially cutting rates, the mood among investors was turning sour.&nbsp;
After riding high on previous gains, the tech sector was now facing the music with investors questioning the longevity of the recent tech rally.&nbsp;
This dip had a domino effect, pulling down other markets along with it. And investor sentiment took a sharp turn, with even Warren Buffett opting for the safety of cash.

What exactly is going on with Robinhood?

Table of Contents

Cryptopolitan_News

Other articles published on Aug 6, 2024

Australia’s Big Banks Block Crypto Payments Amid Rising Crypto Popularity

Solana Remains on the Security Status Hook Despite SEC's Court Move

Icebreaker Secures $5M Seed Funding to Build Blockchain Alternative to LinkedIn

Binance Labs Announces Second Cohort of Season 7 Incubation Program: Aarc, FluxLayer, and Ton Ton...

Northern Data reports 22% revenue increase in Q2 despite Bitcoin halving

Crypto Whales Abandon Shiba Inu Sinking Ship!

Join our free newsletter for daily crypto updates!