Dogecoin Traders Report Problems with Robinhood App, Restrictions Suspected

Users of trading app Robinhood have accused the company of restricting trading of Dogecoin on Thursday during a rally where the meme coin nearly doubled in value.

Robinhood released a statement on Twitter following the accusations, saying “No, we didn’t place restrictions on $DOGE trading. This is false information.” The trading platform later claimed that the stop on $DOGE trading was due to “issues with crypto trading”. 

As of the time of writing, Robinhood users may now trade $DOGE via the app.

Robinhood has already been in hot water over trade restrictions after it was wrapped up in the GameStop (GME) short squeeze in early 2021. The company halted the trading of GME shares after the price spiked when Reddit users on r/wallstreetbets began buying large quantities of the stock.

When questioned about the decision by Elon Musk, Robinhood CEO Vlad Tenev said the decision was made based on regulatory capital requirements.

Robinhood also restricted trades of cryptocurrency early in January 2021. Users reported being unable to make instant cash trade transactions and could only use funds that were already in the account. Robinhood reported that it took these measures due to “extraordinary market conditions”.

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