Robinhood returns instant deposits for crypto purchases

Written by: Ali Raza
February 5, 2021
  • Robinhood recently decided to bring back instant deposits for amounts below $1,000.
  • The company originally removed the feature last week when it delisted GME stock.
  • The return of instant deposits came just in time for traders to take advantage of Dogecoin's new price surge.

Robinhood has recently been involved in quite a major controversy as it delisted the stocks of GameStop and other companies that were involved in the short squeeze caused by Reddit’s Wall Street Bets group. Interestingly, the hype was also used to promote Dogecoin (DOGE), and the coin skyrocketed by 420% in 24 hours last Friday.

For some reason, Robinhood suspended instant deposits for crypto purchases around the same time. Now, however, as the coin started surging again, the stock and crypto trading app decided to bring instant deposits for crypto purchases back.

Robinhood brought back instant deposits just as DOGE surged again

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Robinhood did not only bring back instant deposits for crypto purchases, but it also removed the original update that said that deposits will be disabled. Its site once again promises that users can instantly deposit up to $1,000 for crypto purchases.

The feature became available last night, according to some of the app’s users, who shared their experiences on social media networks.

As some may know, the feature is a premium functionality that allows Robinhood users to instantly transfer funds from banks for stock and crypto trades. With the feature removed for crypto, users needed to deposit their money in the old-fashioned way, where they would have to wait for several business days to pass before the money would arrive.

With crypto volatility periods often only lasting a few hours, this was not an option, which is why the removal of the feature hit Robinhood’s crypto traders pretty hard.

Now, small-time traders once again have access to the instant deposit feature, and just in time, too. The price of Dogecoin is once again going up. In the last 24 hours, the coin surged by 50% and reach $0.0475, only to drop to $0.04480 at the time of writing.

The coin’s price was likely pumped by Elon Musk again, as the world’s richest man recently published an entire series of tweets promoting DOGE.

Meanwhile, Robinhood is still being investigated by the US SEC due to its rash decisions to list and delist stocks whenever it pleases, which resulted in its IPO being put on hold until further notice.