Robinhood to restrict the trading of digital currencies

Robinhood has restricted digital currency trading
  • Robinhood trading platform has halted deposits for cryptocurrencies
  • The decision of restriction came after observing irregularities in the prices of DOGE and BTC tokens
  • The trading platform was the subject of much mockery since it halted the trade of some stocks
  • There is no apparent reason behind the surge in the prices of BTC and DOGE tokens

Robinhood, a commission-free trading platform, had restricted the trade of the cryptocurrency on Friday. The platform decided amid observing the irregularities in the crypto market. Such anomalies include the sudden surge in the price of Bitcoin and DOGE, a meme-based token. According to Robinhood users, the trading platform had halted the deposits of crypto funds earlier in the day. However, the users were allowed to buy the crypto tokens with funds already deposited in the trading platform. Despite the facts, it is known that such deposits can take up to five business days to clear.

Why did Robinhood take such significant steps?

Following the CNBC report, it is found that a spokesperson has revealed the news of restricting the transactions. According to the spokesperson, following extraordinary market behaviour, Robinhood had temporarily turned off instant buying power for crypto tokens. The price of the meme-based token DOGE coin has surged by more than 800% in the period of 24 hours. With the surge in the DOGE coin, it is also observed that the leading crypto-token, Bitcoin has also gained impressive momentum on the day.

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On the other hand, the spokesperson has also revealed that the trading platform is still allowing its users to settle funds to buy digital assets. Robinhood will continue to observe the market and will keep communicating with its clients.

The Investing platform was the subject of much mockery

On Thursday, Robinhood was the subject of much mockery from users, after its platform prevented the trade of GameStop and other popular stocks with short traders. The prevented stocks were observed to be the subject of wildly manipulated price swings. Earlier, this week, some flurry of frenzy investors are trying to manipulate the prices. Such investors are being inspired by the Reddit forum r/wallstreetbets.

The reason behind the unclear surge of DOGE and Bitcoin

The reason causing the price to bark is still unclear, though there are several beliefs in the cryptosphere. Such beliefs include the hand of the Reddit community members, manipulating the prices. Many in the cryptosphere are claiming that the CEO of Tesla, Elon Musk’s tweets with a dog posing in a magazine, has helped the token bark. On the other hand, the price of Bitcoin has surged after, Musk changed his Twitter bio and added #bitcoin.

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Ahtesham Anis
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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