It’s been a rough two days for the Robinhood app.
After coming under fire on Thursday for potential market manipulation by prohibiting the trade of popular “meme stocks” like Gamestop, AMC Entertainment, and Nokia, the trading app is turning its attention to cryptocurrency.
On Friday, Robinhood announced it has disabled “Instant Deposits” which means it will take up to five business days for a deposit to clear before they can buy crypto.
The timing is curious, considering a recent boom in the cryptocurrency Dogecoin, which initially started as a joke.
Dogecoin value was soaring overnight, but now those looking to get in on the upward swing will have to wait until their deposits are cleared sometime next month.
The good news, however, is you can continue to purchase crypto if you already have funds in your account. The restriction will only impact new users.
“Customers can still use settled funds to buy crypto,” a company spokesperson told CNBC. “We’ll keep monitoring market conditions and communicating with our customers.”
Dogecoin surged shortly after Elon Musk sent out a tweet that piqued interest.
— Elon Musk (@elonmusk) January 28, 2021
As for Gamestop, AMC, and Nokia stock, Robinhood is allowing trading of those stocks in “limited quantities.”
Happy trading, everyone.