Tech Industry Disrupted By Virus Cancellations And Major Startup Shutdown
The COVID-19 coronavirus forces Google to cancel its massive I/O developer conference, while Justin Kan's well-funded legal startup Atrium unexpectedly shuts down. Robinhood also explains that unprecedented trading traffic caused its recent severe platform outages.
The COVID-19 coronavirus continues to clear the 2020 tech industry calendar as Google officially cancels its annual I/O developer conference. This decision follows similar cancellations from Facebook and a shift to digital-only formats for other major tech events. Meanwhile, Facebook and the Chan Zuckerberg Initiative outline a three-part response strategy focused on providing accurate information, stopping misinformation, and sharing data for virus research.
In major business news, Justin Kan’s hybrid legal software and law firm startup Atrium shuts down completely and lays off its entire staff. The company fails to figure out how to deliver better efficiency than a traditional law firm despite raising $75.5 million from investors like Andreessen Horowitz. Atrium plans to return its remaining funds to investors while the separate Atrium law firm continues to operate independently.
Elsewhere, Robinhood reveals that unprecedented trading traffic stresses its infrastructure and causes a "thundering herd" failure of its DNS system during recent outages. In a major legal win for digital assets, India’s Supreme Court overturns a two-year-old central bank ban on cryptocurrency trading. Additionally, a new Cooperative Economy Act emerges as an alternative approach to California's AB 5 law by introducing unions and co-ops to the gig economy.