Robinhood restricts users from trading Dogecoin for the second day

Robinhood, a commission-free trading platform, is back at what it does best: restricting users from trading surging assets. We all remember back in January when Robinhood restricted its users from buying surging stocks like GameStop, AMC Entertainment, and BlackBerry. Robinhood founder and CEO Vlad Tenev later went into hiding from angry client mobs at an undisclosed location following the GameStop trading chaos.

Now, the cryptocurrency trading startup is as it again. Yesterday night, thousands of Dogecoin investors took to Twitter to complain about Robinhood after the exchange prevented them from executing Dogecoin trades. The restriction started after Dogecoin surged by as high as 300% this week alone, making some Reddit users overnight Dogecoin millionaires

The users accused Robinhood app of blocking crypto trades after Elon Musk sparks Dogecoin frenzy. Over 75% of retail investors now said they plan to leave Robinhood blaming the company for manipulating the markets. Some Robinhood users also filed a class-action lawsuit against the company’s decision to restrict the transactions of individual investors, while allowing hedge funds to trade the stocks freely.

However, Robinhood denied the allegations. The company blamed the restriction on technical issues. In a tweet this morning, Robinhood said:

“We’re currently experiencing issues with crypto trading due to unprecedented volumes and are working to resolve them as soon as possible. For the latest, please check our status page http://status.robinhood.com”

We’re currently experiencing issues with crypto trading due to unprecedented volumes and are working to resolve them as soon as possible. For the latest, please check our status page https://t.co/hS5J5eu1GV

— Robinhood (@RobinhoodApp) April 16, 2021

Founded in 2015 by co-founders and Co-CEOs Vlad Tenev and Baiju Bhatt, Robinhood provides commission-free trading for several major cryptocurrencies, including Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ether (ETH), Litecoin (LTC) and Ethereum Classic (ETC).

Robinhood also offers commission-free U.S. equity and options trading, as well as margin and extended hours trading through Robinhood Gold. The platform also offers real-time market data for nearly a dozen more digital assets. Robinhood currently has over three million users and billions of dollars in transaction volume.