Robinhood , the also crypto trading app, has introduced a new feature that protects its investors from the volatility of crypto prices.
According to reports , the feature is called “price volatility protection” (or protection from price volatility) and should modify some crypto orders depending on price fluctuations.
In this regard, Vlad Tenev , CEO of Robinhood said:
“We’ve done a lot of behind-the-scenes work to provide our cryptocurrency clients with the features they’ve been asking for. We want to introduce new features securely, and there’s a lot of things we need to get right from the start.”
What you would get with this new protective feature, is nothing more than a message in the code that could sometimes blow up recurring preset orders or buy less than your chosen or predetermined amount.
All this, obviously by informing the user before carrying out any action, with the proviso that the function will never act by purchasing more than the amount that was selected.
Robinhood and its solution to price volatility
The new functionality of the stock and crypto trading app could also be a protection tool not only for investors but also for the platform itself.
In fact, remembering last May, Robinhood suffered a down after the price of Dogecoin (DOGE) continued to record its records.
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 4, 2021
“We are currently experiencing problems with cryptocurrency trading. We are working to resolve them as soon as possible. For the latest updates, check the status. ”
At that moment, in fact, DOGE saw a total price pump of 900% and the frenzy of the users of the application also probably caused it to go haywire.
Also in the same period, Warren Buffett , the American entrepreneur nicknamed the Oracle of Omaha , was also criticizing the Robinhood app . His comment was referring to the ease of use of the app which made trading like a game, comparing Robinhood to the casino game.
Luckily at the end of that month, Robinhood has won the first place in the standings Disruptor 50 CNBC of 2021 . A list of the disruptive companies that, in addition to surviving the pandemic, have been able to bring a major change to the tech industry they are a part of.