TL; DR breakdown
- Robinhood temporarily stops trading BTC, DOGE.
- The company claims it only disabled instant crypto purchases.
Popular crypto trading platform Robinhood was in the news Thursday for restricting GameStop stock trading.
Similarly, the crypto trading platform has put some restrictions on trading cryptocurrencies as Bitcoin and Dogecoin prices have continued to rise in the past 12 hours.
A Robinhood spokesman who confirmed CNBC’s report said the company had turned off instant buying power on crypto due to exceptional market conditions. He said funds settled could still be used to purchase crypto, however.
“We will continue to monitor market conditions and communicate with our customers,” the spokesman assured.
What Robinhood Crypto Trading Users Are Saying
Users of the crypto trading platform announced today that the platform has stopped making instant deposits for the purchase of cryptocurrencies. As a result, only deposits made on user accounts were available for trading.
According to Robinhood, it could take nearly five days to clear new deposits.
A group of retailers known as WallStreetBets (WSB) on Reddit recently pumped GameStop’s share price. A similar group of people (but likely not the main subreddit itself) turned their attention to Dogecoin. This caused the price of “Meme Crypto” to explode in just one day, increasing by up to 800 percent.
Due to pumping actions, the shares of GameStop (GME) and AMC Entertainment Holdings (AMC) were temporarily restricted to Robinhood as DOGE and BTC were involved in the WSB campaign.
Elon Musk, CEO of Tesla, changed his Twitter profile description to “Bitcoin”, which also caused the price of BTC to rise by almost 20 percent.
The crypto trading firm only recently restricted trading in DOGE and BTC.
Exchanges like Coinbase and Binance also have outages on their platforms.
Coinbase is currently investigating a location outage that occurred during the price recovery. Similarly, at some point, Binance suspended all withdrawals to meet a sharp increase in requests from new unique users.