Elon Musk creates new turmoil in the crypto market

Elon Musk creates new turmoil in the crypto market

The trading platform is popular for trading in the cryptocurrency Dogecoin, which Tesla CEO Elon Musk prefers. And it was foreseeable that Dogecoin would play a central role in Musk’s big television appearance on Saturday night. Nevertheless, the systems of Robinhood failed in the course of the performance. Trading in cryptocurrencies was temporarily completely blocked.

The Dogecoin’s course had picked up speed significantly before the Musk-hosted edition of the popular US comedy show «Saturday Night Live». But at the start of the show, the cryptocurrency went downhill. The token, which had once only been started as a joke, lost about 30 percent and was about 50 cents on Sunday afternoon, according to data from the industry platform Coinmarketcap.

The outcry from Robinhood users on Twitter was huge. «I want to buy the Dip, but I can’t,» complained one user. Others considered filing a class-action lawsuit against the start-up because the platform did not allow them to sell their positions, leaving them sitting on the losses.

For Robinhood, the trouble comes at an untimely time. The start-up, which offers trading of shares and options as well as trading in cryptocurrencies, plans to go public in the coming months. At the same time, it has come under repeated criticism this year. For example, the Internet hype around the shares of the computer game retailer Gamestop and the cinema chain AMC repeatedly failed the systems. At the end of January, Robinhood and other platforms even had to ban or restrict the trading of certain papers.

Robinhood CEO Vlad Tenev was later forced to admit to the US Congress that his company had run into serious liquidity problems because it could not provide the necessary collateral for overheated trading. Tenev assured to work on the robustness of the systems. But there is obviously still a lot to do.

Robinhood was also criticised for not providing sufficient customer service. For example, a user had taken his own life in 2020 – he had been falsely informed that he had lost a lot of money with complicated option transactions. At Robinhood he could not reach anyone by phone.

Crypto-Clock Musk

Elon Musk, the electric car and space pioneer, is increasingly developing into a pacesetter for the crypto market. On » Saturday Night Live «he answered the question» What is Dogecoin?»first of all: «It is the future of the currency.»When a cast member of the show asked,» So, it’s a hustle?», Musk replied, » Yeah, it’s a hustle.“ And laughed. The English word «hustle» can be translated as «hustle», «hustle» or «agitation».

Dogecoin had gained more than 800 percent in value in April, making it the fourth largest cryptocurrency. On Thursday, the price reached a record high of $ 0.73. Musk fueled the rally with tweets like «Dogecoin is the people’s cryptocurrency.»

Then on Thursday Musk tweeted: «Cryptocurrency is promising, but please invest with caution!»But in a video, he also said that cryptocurrencies have a» good chance «of becoming» the future currency of the Earth.» Since March, Tesla customers can pay with Bitcoin.

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