Robinhood Overwhelmed by Dogecoin Selloff After SNL Mention

By Jeff Benson

For weeks, Dogecoin holders have been looking forward to Elon Musk hosting Saturday Night Live, anticipating that the token’s most famous fan would use his appearance to promote the coin.

Though he (and his mom) mentioned token several times throughout the course of the show, it didn’t send the price up as many hoped. Instead, the price of Dogecoin, the fourth-largest cryptocurrency by market cap, cratered. Before the show, it was priced at $0.66, near all-time highs. During the course of the show, it went as low as $0.51 as holders cashed out.

The sell-off coincided with problems at mobile trading app Robinhood, one of the primary places for US retail traders to buy DOGE.

Update: We’re currently experiencing issues with crypto trading. We’re working to resolve this as soon as possible. For the latest updates, check https://t.co/ZS733G6N1J

— Robinhood Help (@AskRobinhood) May 9, 2021

Robinhood users took to Reddit and Twitter to complain about their inability to buy or sell Dogecoin.

It’s not the first time this has happened. Robinhood Crypto, citing “unprecedented” demand, experienced multiple outages in mid-April. The problems have persisted. Just this past week, a Dogecoin surge led to another outage.

During the course of the show, Robinhood reported it was able to solve the issue, claiming the issue was related to “high trading volume and volatility.”

Crypto trading is back up and running. Due to high trading volume and volatility, some customers might see some intermittent issues. We’re working hard to provide a smooth experience, and will monitor the situation closely. Check https://t.co/ZS733G6N1J.

— Robinhood Help (@AskRobinhood) May 9, 2021

Ironically, though, Robinhood suggested before the SNL airing that everything was under control.

We’re all paws on deck, all weekend. 🚀

— Robinhood (@RobinhoodApp) May 8, 2021

“We’re all paws on deck, all weekend,” the app tweeted.

Make that “pause.”