While Robinhood brings one good news for GameStop investors, it brings bad news for crypto investors on the other hand. As per the latest CNBC report, Robinhood has halted instant deposits for crypto purchases.
However, Robinhood had already given the signals on incoming restrictions when they banned DogeCoin (DOGE) trading on Thursday. Earlier today, users have reported that they were unable to make fresh deposits, meaning, Robinhood only allowed to make them crypto purchases through the funds already deposited in their accounts. In an email to CNBC, the Robinhood spokesperson wrote:
“Due to extraordinary market conditions, we’ve temporarily turned off Instant buying power for crypto. Customers can still use settled funds to buy crypto. We’ll keep monitoring market conditions and communicating with our customers.”
Robinhood has received much criticism for its recent actions to control retail trading on the platform after the hedge funds ended losing billions of dollars in one of the most epic battles on Wall Street. Even American lawmakers have jumped in calling Robinhood’s latest action unfair.
This is unacceptable.
We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.
As a member of the Financial Services Cmte, I’d support a hearing if necessary. https://t.co/4Qyrolgzyt
— Alexandria Ocasio-Cortez (@AOC) January 28, 2021
Cryptocurrency Evangelists Push for Decentralization
Robinhood’s recent actions have irked not only retail investors but big even crypto biggies. Bitcoin evangelist Anthony Pompliano has called for an urgent need to decentralize these products and services. He also expressed a desire to invest in firms
moving towards decentralization.
Robinhood is now restricting crypto trading.
We must decentralize these products and services.
If you’re building a piece of the new decentralized financial system, I want to talk to you and potentially invest.
— Pomp 🌪 (@APompliano) January 29, 2021
Commenting on this recent episode around GameStop and DogeCoin, during a CNDC Squawk Box interview, Pomp added:
“They’ve missed a couple of key trends. There was millions of random people on the internet for the last decade that have outperformed these hedge funds by simply buying #bitcoin and holding it. What you’re seeing is this democratization of a financial system”.
Backing retails investors over hedge funds, Pomp also states that “Young investors understand the future. They’ve been right about Bitcoin, Tesla, and Game Stop. Put some respect on their names and remember…. “Retail was right.”