Robinhood Chain Hits First Major Outage and AMC Backlash

Robinhood Chain ran into trouble on September 4 when the Ethereum layer 2 network briefly stopped producing blocks. Transactions stalled for at least fourteen minutes before activity recovered. Robinhood has not yet shared the exact cause of the interruption, which comes just two months after the network launched its public mainnet.

The brief downtime highlights just how fast the network has grown. Recent data shows Robinhood Chain has pulled in about $23 million in cumulative fees, capturing a massive share of layer 2 revenue. Total value locked on the network climbed nearly 27 percent over the past week to roughly $840 million as users pile into decentralized finance applications.

At the same time, Robinhood is facing strong corporate pushback over its stock token business. AMC Entertainment CEO Adam Aron publicly criticized the platform after discovering a token tracking his company shares without permission. Aron demanded that Robinhood stop trading the AMC stock tokens, questioning their legality under United States securities laws. Robinhood chief legal officer Dan Gallagher fired back, stating that the company will not halt trading and is ready to defend the offering.

Despite the pushback and network hiccups, demand remains high. Token Terminal figures show Robinhood has become a leading stock token issuer with more than 860,000 holders. Traders should watch how regulators and other corporations respond to these unapproved equity tokens as Robinhood continues pushing traditional financial assets onchain.