- Robinhood is under fire for limiting trading of heavily-shorted stocks like GameStop and BlackBerry.
- As a result, many traders flocked to the crypto market instead.
- Cryptocurrencies like Bitcoin and Ethereum saw price recoveries despite bearish signs. Meanwhile, Dogecoin surged 800%.
After drawing flak for prohibiting trading of some stocks, Robinhood app has resumed trading these securities, albeit with limitations. Consequently, various cryptocurrencies saw surges as traders began to jump ship from trading securities to crypto.
For example, Bitcoin has bounced back from its bearish trend, and is now trading at $36,417.57 on CoinGecko. Ethereum is also showing signs of recovery, and is changing hands at $1,366.80 at the time of writing.
However, these two major currencies pale in contrast to Dogecoin, which showed at least a 800% increase recently.
These cryptos showed impressive comebacks as Robinhood continues to face scrutiny over its abrupt suspension of security trading. As said in its announcement, it performed the said action due to “recent volatility” of stocks such as GameStop and others.
As a response to mounting pressure, Robinhood has started offering its previous services to the said securities, albeit in a limited manner. Specifically, it enabled trading to position closing. It also raised margin requirements for others.
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However, Robinhood wrote in a more recent update that it would allow limited buying of the securities in question. From its side, Robinhood came up with the initial prohibition because the stocks in question have been heavily shorted.