Robinhood Temporarily Disables Instant Deposits For Crypto's.
2021-01-29 | Robin Williams
Stock & cryptocurrency trading platform Robinhood has temporarily disabled instant deposits for crypto purchases as of today on Friday, citing "extraordinary market conditions."
However, users are still
able to purchase cryptocurrency using settled funds that have earlier been deposited, although such deposits can take up
to 5 business days to clear.
A Robinhood spokesperson
told CNBC that
the firm would "keep monitoring market conditions along with communicating with our users.
Robinhood has faced recent criticism for suspending the trading of a
variety of traditional stocks, along with GameStop, that were being supported by retail investors to the detriment of Wall Street hedge funds.
This prompted United States congresswoman Alexandria Ocasio-Cortez
to explain the move as unacceptable. Ocasio-Cortez, who sits on the House FSC [Financial Services committee], then hosted an hour-long Twitch stream, discussing
the subject with a
variety of guests, which pulled in 300k viewers.
One of the questions that the congresswoman posed was: "How
does one actually shift power back to the hands of everyday people? Ultimately
that is what this is often about.”
Robinhood's "Instant Buy" functionality
might be a paid feature
that offers users instant access to funds from bank deposits & stock trades.
The suspension of instant purchasing power for cryptocurrency via the trading app comes hot on the heels of
an equivalent group of retail investors, led by Redditors from the r/Wallstreetbets subreddit,
pumping Dogecoin [DOGE] to surge over 900%.
This has led to the meme-based coin reentering
the highest 10 digital assets by
market capitalization for
the primary time since 2015.
Leave a comment
Your email address will not be published. Required fields are marked *
