Reports have revealed that the leading stock and trading app Robinhood has re-enabled instant deposits for crypto purchases after suspending this service for almost a week since January 29.
On February 4, Robinhood reportedly removed the original update on its support page suspending instant deposits. According to data acquired from its site, certain users once again now have instant access to up to $1000 to buy crypto. Many app users have also reported on social media that they could access the trading platform on Thursday.
The ‘instant buying’ function is a paid feature that enables Robinhood users to instantly access funds from bank deposits and stock trades. Although users were still able to acquire crypto using deposited funds, those deposits reportedly need up to five business days to clear. Notably, such delays mean missing out on volatile trading periods, especially on crypto markets that requires accurate timing.
While small-scale traders happily reclaim their access to the Robinhood crypto-buying feature, the price of meme-themed cryptocurrency Dogecoin (DOGE) has exploded by more than 50% in the last 24hours to reach above $0.0475 at the time of publishing. The Dogecoin likely received an additional pump after billionaire Elon Musk named plummeting DOGE in a series of tweets early on Thursday.
In the meantime, Robinhood is under scrutiny after the investment app suspended buys of GameStop stock and other assets pushed by retail investors from the r/Wallstreetbets subreddits last week. The video company has since reportedly put its plans for an initial public offering on hold awaiting a pending lawsuit.
Lawmakers in the U.S House of Representatives Financial Services Committee will hold a hearing related to GameStop trades on February 18, with Robinhood CEO Vlad Tenev expected to testify.