Dogecoin surges 300%, prompting Robinhood to limit cryptocurrency transactions

First the Robinhood prevented the purchase of GameStop shares, and now the microtransaction app wants you to stop buying crypto with it. On Friday morning, January 29, the app stopped accepting instant deposits for cryptocurrency purchases, so users can only buy crypto with funds they already have in their account on the app. But why? It seems that this decision is an attempt to manage another crisis at Robinhood, this one triggered by a meme-inspired cryptocurrency, Dogecoin.

In the past 24 hours, the value of the “joke” cryptocurrency Dogecoin has risen by more than 300%, mainly thanks to crazy investors in the r / WallStreetBets. Dogecoin emerged in 2013 as a joke by Australian entrepreneur Jackson Palmer on Twitter. The name refers to the best-known cryptocurrency, bitcoin, and the famous memes of the Shiba Inu known as Doge. As Palmer wrote for VICE in 2018, he saw Dogecoin as a tool for people to get into the world of cryptocurrencies. But in 2014, he said, scammers infiltrated the community and scammed several members.

But now, surfing the chaotic wave created by small investors in the Reddit and Discord, Dogecoin is back, and with a market cap of over US$7 billion. Wow

On the decision to limit trading of cryptocurrencies, including Dogecoin and bitcoin (which also saw a 20% surge), a Robinhood spokesperson wrote for CNBC: “Due to extraordinary market conditions, we have temporarily shut down instant crypto purchasing power. Our customers can still use their funds to purchase cryptocurrencies. We will continue to monitor market conditions and communicate with our customers.”

Through which channels you reach those people, classic and out of the box. The Verge

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