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.
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.
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.
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.