Robinhood limits crypto trading as Dogecoin climbs 300%

Robinhood started restricting cryptocurrency trading this morning, just as the price of Dogecoin cryptocurrency soared by over 300% in 24 hours. CNBC reports that Robinhood users began to notice that instant deposits for cryptocurrencies were no longer working on Friday morning, and the company confirmed that it had restrictions in place.

“Due to extraordinary market conditions, we have temporarily disabled instant purchasing power for crypto,” a Robinhood spokesperson said in a statement to CNBC. “Customers can still use settled funds to buy crypto. We will continue to monitor market conditions and communicate with our customers. “

Image: Coindesk

Dogecoin came into being in 2013 as a result of a joke on Twitter – a play about Bitcoin and the doge meme. Its price started to skyrocket yesterday, and Dogecoin currently represents a market cap of over $ 7 billion thanks to a huge trading volume in the past 24 hours.

Market activity and restrictions over the past 24 hours have now made Dogecoin a popular meme among r / WallStreetBets investors. Dogecoin has been regularly spammed on WallStreetBets’ Discord server over the past two days.

Bitcoin is also on the move, up nearly 20% in the past 24 hours. Tesla CEO Elon Musk also changed his Twitter profile to include #bitcoin and tweeted “In retrospect, it was inevitable.”

Robinhood’s latest crypto restrictions come less than a day after the company decided to restrict its users from buying or trading any of the popular Reddit r / WallStreetBets stocks, including GameStop ($ GME), AMC ($ AMC), BlackBerry ($ BB), Bed Bath & Beyond ($ BBBY), Nokia ($ NOK), and more.

It was a move that was the subject of much criticism and Google was forced to reclaim Robinhood’s one-star rating from the Google Play Store by removing nearly 100,000 negative reviews after disgruntled users bombarded it. application. Robinhood says it will now allow “limited purchases” of stocks like GameStop starting Friday.