The emblem of buying and selling app Robinhood is displayed on a smartphone.
Olivier Douliery | AFP by way of Getty Photos
Robinhood restricted buying and selling in cryptocurrencies on Friday, as the value of bitcoin and a meme-inspired token rose sharply.
Customers started reporting that the buying and selling app had halted prompt deposits for crypto purchases earlier within the day, that means they might 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.
“Because of extraordinary market situations, we have quickly turned off Prompt shopping for energy for crypto,” a Robinhood spokesperson mentioned in an announcement emailed to CNBC.
“Prospects can nonetheless use settled funds to purchase crypto. We’ll maintain monitoring market situations and speaking with our prospects.”
The investing platform was the topic of a lot derision from prospects on Thursday after it prevented them from shopping for GameStop and different shares widespread with retail merchants. Such shares have been the topic of wildly unstable worth 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 primarily based 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.