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CNBC's Ryan Browne Confirms Robinhood Halts Instant Crypto Deposits

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Fri, 01/29/2021 - 13:36
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Vladislav Sopov
Infamous retail application halts "deposits for crypto purchases" amidst massive criticism and lawsuits
CNBC's Ryan Browne Confirms Robinhood Halts Instant Crypto Deposits
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According to CNBC journalist Ryan Browne, the infamous retail application for trading, Robinhood, has switched off instant deposits for crypto purchasing. However, purchasing of digital assets is avaliable with "settled funds."

Robinhood halts its services amidst developing gossip

In his latest tweet, Mr. Browne confirmed that instant deposits for crypto purchasing are temporarily unavaliable for Robinhood app users. The journalist adds that "extraordinary market conditions" are behind this emergency solution.

Robinhood halts deposits for crypto purchasers
Image via Twitter

Previously, numerous traders reported issues with this type of deposit. Also, yesterday, Jan. 29, 2021, the exchange delisted a number of red-hot assets, including GameStop and AMC. Meanwhile, Robinhood's investor, Citadel, is also related to Melvin Capital, the hedge fund that shorted GME stocks and was liquidated.

Additionaly, a number of Crypto Twitter inhabitants reported that Robinhood started to involuntarily liquidate its clients' positions.

Robinhood liquidates its clients' positions
Image via Twitter

At the same time, the source told Mr. Browne that the service continues monitoring market conditions and communicating with all of its customers.

Exodus to Coinbase and Binance is on the menu?

Robinhood is not the only service that introduced unusual restrictions today. As covered by U.Today previously, Binance, one of the world's leading cryptocurrency ecosystems, halted withdrawals due to a spike in the number of new customers.

Related
Binance Suspends Withdrawals as New Users Are Rushing in Crypto

Most likely, it is caused by the outflow of users from Robinhood due to its brutal interference in customers' trading strategies.

Also, Coinbase, the top-notch U.S. crypto exchange went offline one hour ago. Now all Coinbase systems are "on temporary maintenance."

The crypto community recommends that Robinhood traders migrate to decentralized services like Uniswap (UNI) and Bancor (BNT), where the platform team cannot affect customers' trading activity.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)