Robinhood users have been reporting difficult access to buying cryptocurrency since this morning, as many customers want to buy « Dogecoin ». The app confirmed that it added new barriers on Friday January 29th to cope with « exceptional market conditions ».
The high volatility of several tokens forced Robinhood to regulate again.
Yesterday was a disastrous day after the decision was made to block its customers from buying GameStop ($ GME), AMC ($ AMC) and other titles under the control of WallStreetBets, the retail investors of the Reddit forum.
The stock market yesterday, cryptocurrencies today. When customers quickly switched platforms to continue trading, there was another asset here that grew in popularity on Friday. This is a digital token, « Dogecoin » that has increased by 800% in the last 24 hours.
« Born of a joke on Twitter in 2013, » as our colleagues at The Verge so aptly recall, the token is only valuable as a collection of pranks on it. With more than $ 7 billion in capitalization since the recent price hike, WallStreetBets have made it a new emblem.
The price for Dogecoin this Friday, January 29th, 2021 © Coindesk
In the trading app, which has been offering the purchase of cryptocurrencies since 2018, users are not completely excluded. The app didn’t block access to digital tokens, but to increase vigilance, Robinhood blocked one of its features to quickly top up an account.
The aim is therefore not to block the purchase, but to limit it by avoiding compulsive and unreasonable purchases. Note that Robinhood does not make any money for its crypto business. But its customers could lose a lot.
« We will continue to monitor market conditions and communicate with our customers, » a Robinhood spokesman told CNBC after a night the online brokerage service urged shareholders to raise $ 1 billion.
Bitcoin on the rise too
Dogecoin’s 800% is not the only indicator of market volatility classified as « exceptional » by Robinhood. Late on Thursday night, Elon Musk edited his biography by adding the hashtag « Bitcoin » and tweeted, « In retrospect, that was inevitable. »
In a matter of minutes, the price of Bitcoin rose more than 17% to $ 38,000. A level that Bitcoin has not seen since January 14th.
Also read: How do you declare your cryptocurrencies in 2021?