Robinhood started restricting cryptocurrency trading this morning, just as the price of the Dogecoin cryptocurrency skyrocketed by more than 300 percent in 24 hours. CNBC reports that Robinhood users began to notice that instant deposits for cryptocurrencies were no longer working on Friday morning, and the company confirmed that it had placed restrictions.
“Due to extraordinary market conditions, we have temporarily turned off instant crypto purchasing power,” said a Robinhood spokesman in a statement to CNBC. “Customers can still use the settled funds to buy encryption. We will continue to monitor market conditions and communicate with our customers. “
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Dogecoin came to life in 2013 behind a Twitter joke – a prank on bitcoin and the doge meme. Its price started to rise yesterday, and Dogecoin currently has a market capitalization of more than $ 7 billion, thanks to a large volume of transactions in the last 24 hours.
Market activity and restrictions in the past 24 hours have made Dogecoin a popular meme among r / WallStreetBets investors. Dogecoin has been consistently spammed on the WallStreetBets Discord server for the past few days.
Bitcoin is also on the move, up almost 20% in the past 24 hours. Tesla CEO Elon Musk also changed his Twitter profile to include #bitcoin and tweeted “In retrospect, it was inevitable.”
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Robinhood’s latest encryption restrictions came less than a day after the company decided to restrict its users from buying or trading any of the popular shares of Reddit r / WallStreetBets, including GameStop ($ GME), AMC ($ AMC), BlackBerry ( $ BB), Bed Bath & Beyond ($ BBBY), Nokia ($ NOK) and more.
It is a move that has been met with widespread criticism, and Google has been forced to redeem a Robinhood star rating on the Google Play Store, deleting almost 100,000 negative comments after dissatisfied users bombarded the app. Robinhood says he will now allow “limited purchases” of shares like GameStop from Friday.