- Robinhood users found themselves unable to buy or sell cryptocurrency Thursday night, an issue reminiscent of the app’s decision to restrict GameStop trades earlier this year.
- While Robinhood resolved the problem within a matter of hours, it came amid a massive rally on Dogecoin, a cryptocurrency that started out as a joke. The app’s crypto services briefly went down again Friday morning as the rally continued.
- Robinhood has denied that its crypto trading outages were an intentional effort to drive down Dogecoin prices and instead blamed the outages on “unprecedented demand for Robinhood Crypto services.”
- By Friday morning, Dogecoin briefly soared to $0.45, more than 400% of the value it had at the beginning of the week and more than 4,500% of the value it had at the beginning of the year.
Robinhood Crashes Amid Dogecoin Rally
The joke cryptocurrency Dogecoin has surged more than 400% this week alone, but around 10 p.m. EST Thursday night, the free-to-trade app Robinhood tweeted that it was “experiencing issues with crypto trading.” In turn, that caused many of the app’s users to find themselves unable to execute trades.
Dogecoin first began to spike Tuesday ahead of the market debut of the cryptocurrency exchange Coinbase, which raised $86 billion in its first day of trading. That morning, one Dogecoin amounted to about $0.07. By midnight, it had doubled in value. Those gains continued Thursday evening when Dogecoin spiked to around $0.33.
That may not seem like much, but if a person invested $1,000 in Dogecoin when it was selling for around $0.01 at the beginning of the year, by Thursday evening, that person would be sitting on a small fortune of around $33,000 before taxes.
Robinhood Users Angry Yet Again
Many Robinhood users found themselves frustrated when they were unable to sell off their existing dogecoins, especially since the cryptocurrency’s value was rapidly falling.
In fact, within the matter of just over an hour, it had dipped to around $0.25. Using the last example above, that would mean thousands of dollars of missed opportunity.
“Are you going to cover my account?!?” one user asked Robinhood when she found herself unable to sell her dogecoins. “This is a technical error, not my own risk. Ive been trying to execute this transaction for almost two hours! None of my crypto comes up!”
Are you going to cover my account?!? This is a technical error, not my own risk. Ive been trying to execute this transaction for almost two hours!— JT (@JenninNYC) April 16, 2021
None of my crypto comes up! pic.twitter.com/rZ4qoXostn
This is not Robinhood’s only bout with controversy. Earlier this year, the company infamously blocked its users from buying GameStop stock during a frenzy that sent shares from under $20 to nearly $500 at one point; however, Robinhood still allowed users to sell their existing shares — a move that even if it lacked the intention, had the effect of attempting to drive share prices for GameStop down.
Though CEO Vlad Tenev later argued that the company “had no choice” but to restrict buying, Robinhood’s decision nonetheless sparked the ire of its users and even prompted Congressional investigations.
Many Robinhood users were quick to point that out Thursday when they once again found themselves unable to execute trades. Some even accused the company of more nefarious intentions.
Service Restored… Until It Went Down Again
At 11:46 p.m. Thursday night, Robinhood tweeted that crypto trading had been “fully” restored.
“Like others, we were experiencing unprecedented demand for Robinhood Crypto services, which created issues with crypto trading,” the company said. “We’ve resolved the issue and apologize for the inconvenience.
Multiple times since Thursday evening, the company has denied that it intentionally halted crypto trading to affect Dogecoin prices.
“Unprecedented demand for Robinhood Crypto services created temporary issues with crypto trading,” a Robinhood spokesperson told the New York Post Friday. “That’s it, plain and simple.”
On Friday morning, Dogecoin went on to spike at a current 52-week high of $0.45; however, it soon dipped back into the mid- to upper-thirty-cent range, where it remained around 3 p.m. EST.
Meanwhile, amid the surging demand, Robinhood experienced yet another crypto outage around 10:30 a.m. EST Friday. Just before 11 a.m., it said that trading had been restored for most customers.
See what others are saying: (New York Post) (Business Insider) (Coindesk)
Student Group Selling NFTs of Trump Tweets Will Donate Sales To “Charities He Hates”
- Several students known as Strategic Meme Group are selling over 46,000 tweets from former President Donald Trump as NFTs in a bid to reclaim some of his most controversial messages.
- The students said 100% of the sales will go “to charities [Trump] hates,” including organizations that benefit communities the one-term president targeted on Twitter. For example, sales from Trump’s “ChinaVirus” tweets will go to charities such as the Asian Pacific Fund.
- “As an [Asian and Pacific Islander] person myself, and also our founders Jason Yu and Theodore Horn… Trump’s tweets have had a negative impact on us,” Jackie Ni, Chief Meme Officer of SMG, told Rogue Rocket on Friday. “And so, we were just thinking, ‘Is there a way to get something good out of this? Is there a way that we can potentially benefit the community being harmed?’”
- So far, Ni said the group has raised $9,500 through the sale of 118 tweets.
Trump Tweets for Sale
A group of high school and college students have taken former President Donald Trump’s most controversial tweets and turned them into nonfungible tokens in an attempt raise funds for the groups he targeted online.
“Trump tweets for sale,” their website, drumpfs.io, reads. “100% profits to charities he hates. Environmentally friendly.”
In total, 46,964 of the one-term president’s tweets are for sale on the site, including some of his more racially charged messages.
That includes tweets involving multiple uses of the term “ChinaVirus,” which has been condemned by critics as racist and a contributor to the recent uptick in violence against Asian Americans since the beginning of the coronavirus pandemic.
But the students behind this project, known as Strategic Meme Group (SMG), are hoping to reclaim those tweets by donating their sales to specific charities, including the Asian American Legal Defense and Education Fund and the Asian Pacific Fund.
“We don’t want people to forget about the things Trump did or the things he said,” Jackie Ni, Chief Meme Officer of SMG, told Rogue Rocket on Friday. “This man is really flawed. This man is actually really hateful. If you look at his past tweets, these are not presidential. These are not human honestly.”
“As an [Asian and Pacific Islander] person myself, and also our founders Jason Yu and Theodore Horn… Trump’s tweets have had a negative impact on us,” Ni added. “And so, we were just thinking, ‘Is there a way to get something good out of this? Is there a way that we can potentially benefit the community being harmed?’”
Some of the other tweet-specific charities featured on the site include the Clinton Foundation, Americares, Clean Air Task Force, the American Civil Liberties Union, the Southern Poverty Law Center, Doctors Without Borders, and the National Association for the Advancement of Colored People.
The site also lists a “general fund,” which Ni said is used for tweets that are harder to categorize. Ni said SMG will ultimately hold a vote to determine which charities those sales go toward once the fund reaches a $10,000 threshold.
How Much is a Drumpf NFT?
On the site, Trump’s tweets are divided into four categories: for sale, infamous, deleted, and flagged.
The vast majority of his tweets are being sold for 0.0232 Ethereum, which was valued at around $81 as of Friday morning. Notably, 232 is the number of electoral college votes Trump received during the 2020 Presidential Election.
A smaller subset of Trump’s most infamous tweets, such as “covfefe,” are being sold for 4.5 Ethereum, which was just shy of $16,000 as of Friday morning.
Ni said SMG has already raised over $9,500 through the sale of 118 NFTs since launching the website on April 22. Most of the tweets are ones Ni described as ironically “funny,” as the majority of them include Trumps’s infamously-iconic catchphrases “drain the swamp,” “fake news,” etc.
“And it’s not funny that like we’re laughing with Trump,” Ni told Rogue Rocket. “It’s more like we’re laughing at him.”
Ni said he expects sales to cross the $10,000 threshold soon, and from there, the group will begin the process of determining how to best donate to the listed charities since converting from Ethereum to U.S. dollars involves multiple steps.
What is SMG?
SMG is actually the second political venture for these students.
In 2020, Ni, Horn, and Yu started MemePac, which Ni described as a “youth, Gen Z super PAC” designed to oppose Trump. The group quickly gained significant traction on TikTok with more than 350,000 followers and was even featured in The New York Times.
Ni said much of the inspiration behind Drumpfs, which is a nod to a 2016 John Oliver segment where he highlighted that one of Trump’s ancestral names is “Drumpf,” comes from the recent boom of tweets being converted into and sold as NFTs. In an interview with NowThis, Horn credited Twitter CEO Jack Dorsey’s sale of his first tweet for $2.9 million in March.
Ni told Rogue Rocket that SMG was able to access the full catalogue of Trump’s tweets since they have all been archived by other organizations. As NFTs are still young, there’s little regulation behind them, meaning that the group isn’t barred for selling tweets they never posted themselves.
The advent of NFTs, and more specifically blockchain technology in general, has concerned many environmentalists because of the sheer electrical energy that it requires.
With that concern in mind, Ni said SMG wanted to ensure that it worked to offset carbon emissions generated by its NFTs.
“As a progressive Gen Z group, how can we advocate for a technology and use something that gives so much carbon emissions?” Ni said.
“What we’re trying to do to offset that is that we’re buying carbon offsets [through GoldStandard.org] double the amount generated,” he added.
Washingtonian Staffers Refuse To Publish in Protest of CEO’s Op-Ed About “Risks of Not Returning” To in-Person Work
- Washingtonian editorial staffers refused to publish new content Friday in response to an op-ed their CEO Cathy Merrill wrote about employees who wanted to continue doing the majority of their work remotely, which many viewed as a public threat to their jobs.
- In the op-ed, Merrill suggested that “about 20 percent” of every office employees’ job is to participate in “extras” outside their core responsibilities, including “mentoring more junior people” and “celebrating someone’s birthday.”
- If employees aren’t around to do so, she suggested managers have a “strong incentive” to change an employee’s work status to “contractor” to avoid paying for healthcare, a 401(k) match, and other benefits.
- After widespread backlash, Merrill walked back on her comments in an internal memo to staffers.
Op-Ed Triggers Outrage
Editorial staff at Washingtonian, a DC-based magazine, refused to publish new content on Friday in response to an op-ed their CEO wrote that many staffers viewed as a public threat to their jobs.
Cathy Merrill published her op-ed in The Washington Post Thursday, titled: “As a CEO, I want my employees to understand the risks of not returning to work in the office.”
In it, Merrill expressed excitement about the prospect of returning to work in person but said she was concerned about employees who wanted to continue doing the majority of their work remotely.
She claimed fellow CEOs have told her that older employees are more reluctant to return to the office because they work “from comfortable homes” and are “happy to be relieved of commuting.” Meanwhile, their younger colleagues “have been working from small apartments or their parents’ homes.”
Merrill argued that this was an issue because companies need leaders on site, and she suggested that “about 20 percent” of every office employees’ job is to participate in “extras” outside one’s core responsibilities. This includes in-person activities, such as “mentoring more junior people,” “celebrating someone’s birthday,” and doing other things that “drive office culture.”
If employees aren’t around to do so, she suggested that managers have a “strong incentive” to change an employee’s work status to “contractor.”
“That would also mean not having to pay for health care, a 401(k) match and our share of FICA and Medicare taxes — benefits that in my company’s case add up roughly to an extra 15 percent of compensation,” she continued.
“Not to mention the potential savings of reduced office space and extras such as bonuses and parking fees.”
Merrill also argued that “professional development is hard to do remotely,” and said “being out of that informal loop is likely to make you a less valuable employee.”
She closed her piece by suggesting that those who maintained personal relationships with their bosses would have more job security because “the hardest people to let go are the ones you know.”
The op-ed was met with swift condemnation from fellow members of the media, as well as readers.
They say: “I worry about the erosion of office culture”— Markus Di Mastro (@MarkusDiMastro) May 7, 2021
They mean: “I worry about the erosion of my ability to casually exploit, abuse, and manipulate my employees by making them do stuff completely unrelated to their jobs.”
By Friday morning, The Washington Post had changed the op-ed’s headline to: “As a CEO, I worry about the erosion of office culture with more remote work.”
According to HuffPost reporter Dave Jamieson, “Merrill says she did not write the original headline to her op-ed and expressed to WaPo that she felt it was inaccurate.”
The Post’s Editorial Page Editor Fred Hiatt said in a statement to CNN Business that he asked his staff to change the headline and said “nothing else in the op-ed has been changed.”
The change did little to ease outrage, and on Friday morning, Washingtonian staffers tweeted identical statements announcing their decision not to publish for the day.
“As members of the Washingtonian editorial staff, we want our CEO to understand the risks of not valuing our labor. We are dismayed by Cathy Merrill’s public threat to our livelihoods. We will not be publishing today,” the tweets read.
The staff is not unionized, so the refusal to work is especially notable because it carries extra risks.
CEO Walks Back
The growing outrage prompted Merrill to walk back her remarks in an internal memo to staff Friday, saying “flexible with work schedules and time in the office,” along with health and 401K benefits will not change. She said she is not going to switch full time workers to freelancer status, as she suggested in her op-ed.
“These are critical parts of our culture and also things I deeply, personally believe in,” Merrill said in the memo that reported have since shared online.
“I can and will maintain this strategy because we are a small family-owned company and I can. But I do worry about larger less personal businesses and how that may affect our country. That is precisely why I wrote the piece.”
In an earlier statement, Merrill said, “I have assured. out team that there will be no changes to benefits or employee status. I am sorry if the op-ed made it appear like anything else.”
See what others are saying: (CNN) (The Wrap) (The New York Times
Unemployment Claims Fall for 4th Straight Week, Finally Dipping Below 500,000
- Unemployment claims fell to 498,000 last week, marking the first time claims dipped below half a million since coronavirus pandemic closures began.
- It’s also the fourth straight week of declining unemployment claims, though the numbers are still well above the roughly 200,000 weekly claims that were being filed prior to lockdowns.
- Continuing claims increased slightly to just under 3.7 million, but the four-week moving average for those claims is still decreasing.
Unemployment Claims Hit Another Pandemic Low
The Labor Department announced Thursday that unemployment claims last week fell to 498,000.
Not only does that make this the fourth straight week of declining unemployment claims, but it’s also the first time since the coronavirus pandemic began that weekly claims have fallen below half a million.
Earlier this week, it was reported that private payrolls climbed by 742,000 last month, marking the fourth-straight monthly climb. Despite that positive news, the official count was somewhat smaller than economists’ projections of 873,000 jobs.
While those numbers highlight a hopeful trend that the labor market is continuing its journey back to pre-pandemic levels, it’s important to remember that the market still hasn’t reached “normal” yet. Before the pandemic, weekly jobless claims were at around 200,000.
Continuing unemployment claims were a bit more of a mixed bag over the last week. For example, while those claims rose slightly to just below 3.7 million, there was somewhat of a silver lining since the four-week moving average for those claims is still declining.
The Bureau of Labor Statistics is expected to release nonfarm payrolls Friday, and economists predict it will report nearly 995,000 jobs gained last month. If that prediction holds, the unemployment rate would drop from 6% to 5.8%.
Ending Enhanced Unemployment Benefits
Montana Gov. Greg Gianforte (R) indicated Tuesday that he is seeking to end his state’s federally enhanced unemployment benefits by the end of June amid a “severe workforce shortage.”
“Nearly every sector in our economy faces a labor shortage,” Gianforte said in a statement. “The vast expansion of federal unemployment benefits is now doing more harm than good.”
In its place, Gianforte wants to offer return-to-work bonuses.
“Choosing to eliminate these critical benefits will have the greatest impact on the most vulnerable,” U.S. Labor Department spokesperson Michael Trupo said in a statement critical of Gianforte’s decision.
Trupo added that the move will force immunocompromised workers, as well as workers with immunocompromised family members, to “make an impossible choice” between their health and finances.
In a similar announcement to Gianforte, Florida Gov. Ron DeSantis (R) said Wednesday that those out of work in his state will soon have to prove that they’re looking for a job to continue receiving benefits.
“Normally when you’re getting unemployment, the whole idea is that’s temporary, and you need to be looking for work to be able to get off unemployment,” DeSantis said at a news conference. “It was a disaster, so we suspended those job search requirements. I think it’s pretty clear now, we have an abundance of job openings.”
The waived work-search requirement will expire on May 29.