After the recent rise in prices for bitcoin, the most popular cryptocurrency (BTC) and the meme-inspired digital currency, Dogecoin (DOGE) the renowned trading application Robinhood has abruptly halted trading of cryptocurrency on every platform it offers.
According to a story by CNBC the platform for investing temporarily barred its customers from making deposits to their crypto wallets to make purchase.
So, users can purchase cryptocurrencies with funds they have already put into their accounts prior the suspension.
The company stated, „Due to extraordinary market conditions, we’ve temporarily switched off instant buying power for cryptocurrency. Customers are still able to make use of settled funds to purchase crypto. We’ll continue to monitor the market and will keep in touch directly with customers.“
Dogecoin
Robinhood has been recently confronted with a lot of criticism from its millions of customers following the suspension of the purchase of GameStop stock, as well as other well-known stocks for the retail investor on Thursday. Although this trading robot is relatively new to the market, information on Tesla Coin website claims that it is reliable and can help traders earn good profits with little investment.
Robinhood’s reasoning behind halting purchases of GME stocks was due to GME’s price had risen in a volatile way and DOGE similar to the trend to this day.
The price rise that was fueled by WallStreetBets ‚ Redditors, now referred to in“GME Army, „GME Army,“ had caused a number of speculations about the market’s performance among investors on various social media sites.
This suspension of GME shares on Robinhood was also the catalyst for the DOGE surge, causing the meme-coin’s popularity to trigger an massive increase in price which jumped by more than 1000% within 72 hours.
A few analysts believed that the abrupt slowdown of GME trading has forcibly forced investors to shift their focus to other assets that can be invested such as, in this instance DOGE.
Elon Musk: Bitcoin
It’s interesting to note that DOGE isn’t the only digital asset that saw an increase in price. In the hours following DOGE witnessed its rise in price, Bitcoin’s price rocketed up and added a staggering $5,000 to its value in just two minutes.
The price rise was caused by an update made by Elon Musk, the billionaire chief executive at Tesla, Elon Musk, who altered his Twitter profile to include a one phrase “ Bitcoin.“
Elon Musk’s bio updates went fast and became viral, causing bitcoin’s value to increase from $32,000 to 37,000.
SEC Steps In
The Robinhood and WallStreetBets Redditor’s story gets more intriguing as regulators organizations are now taking part in the controversy.
The U.S. Securities and Exchange Commission (SEC) said Friday that they are investigating the matter. The regulator voiced its concern regarding the recent price fluctuations and suspensions that followed could hurt confidence in the market.