Robinhood restricted buying and selling in cryptocurrencies on Friday, as the worth of bitcoin and a meme-inspired token rose sharply.
Customers started reporting that the buying and selling app had halted instantaneous deposits for crypto purchases earlier within the day, which means they may solely purchase the currencies with funds already deposited of their accounts. Such deposits can take as much as 5 enterprise days to clear, Robinhood mentioned.
“Attributable to extraordinary market circumstances, we have quickly turned off On the spot shopping for energy for crypto,” a Robinhood spokesperson mentioned in an announcement emailed to CNBC.
“Clients can nonetheless use settled funds to purchase crypto. We’ll hold monitoring market circumstances and speaking with our clients.”
The investing platform was the topic of a lot derision from clients on Thursday after it prevented them from shopping for GameStop and different shares common with retail merchants. Such shares had been the topic of wildly unstable value swings this week on account of a flurry of buyers impressed by the Reddit board WallStreetBets.
Robinhood’s transfer to limit crypto buying and selling comes after dogecoin, a digital coin based mostly on the favored “doge” meme, spiked as much as 800% Friday. The cryptocurrency was initially began as a joke however has since discovered some traction.