Breaking: Robinhood Restricts Crypto Trading, Halts Instant Deposits for Cryptocurrency Purchases

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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.

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.

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.”

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Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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