Robinhood Hopes Credits Will Soothe Traders Furious Over Outages

The popular Robinhood trading app is offering credits to some customers who couldn't trade during an epic market rally, according to CNBC.
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Dogged by an embarrassing breakdown amid an historic market rally, the financial services company behind the market-trading Robinhood app is looking to make it up to frustrated customers.

The private firm, which was valued at $7.6 billion in its most recent funding round last year,  has notified customers in an email it plans to dole out credits to some customers who were affected by the breakdown of the Robinhood trading app, according to CNBC. It said the amount of credits would be determined on a case-by-case basis. 

Customers eager to trade when the markets soared on March 2, posting the biggest gain in 12 years, instead found themselves sidelined due to a "system-wide outage."

To make matters worse, the rally came after markets took a severe hit in the last week of February, posting what where then the biggest declines since 2008.

Robinhood later broke down twice more, including a week later, preventing customers from trading on a particularly bad day during the current market downturn.

In its email to customers, Robinhood said it had fixed the engineering problems that led to the outage.

"An apology alone will not rebuilt your trust in us. Instead, we hope our actions will," Robinhood wrote in its email to customers, CNBC reported.

The offer of credits comes after an extensive apology on March 3 by Robinhood co-founders Baiju Bhatt and Vladimir Tenev on the company's website.

Robinhood's cofounders blamed the outage on the "thundering herd effect," which the pair said had hit the system behind the app with "unprecedented load." In their message, the app's cofounders said they were working to increase redundancies in the system to prevent another unexpected shutdown.