Robinhood To Let Users Deposit, Withdraw Dogecoin And Other Cryptos: What That Means For Investors

Robinhood Markets, Inc will allow its customers to withdraw and deposit cryptocurrencies such as Bitcoin (BTC) and the meme-themed Dogecoin (DOGE).

What Happened: The broker said in a series of tweets that it is in the process of building deposits and withdrawals for all listed cryptocurrencies. 

Why It Matters: Currently, Robinhood allows its users to buy, sell and hold cryptocurrencies but users are not permitted to move their cryptocurrency to other wallets. 

Last month, Robinhood had imposed restrictions and shut off the instant deposits feature for cryptocurrency trading, after the price of DOGE ran up 800%.

The brokerage had also suspended the purchase of Reddit-fueled stocks such as GameStop Corporation GME and AMC Entertainment Holdings Inc AMC as retail investors carried out a short squeeze.

Tesla Inc TSLA CEO Elon Musk seemingly agreed Tuesday that Robinhood could be the owner of the world’s largest DOGE wallet address, DH5, which holds over 28% of all circulating supply of the Shiba-Inu themed joke coin. 

Musk wants major DOGE investors to shed most of their coins citing “too much concentration” of the cryptocurrency in the hands of a few whales. 

Price Action: BTC traded 4.25% higher at $51,883.04 at press time, DOGE traded 3.12% lower at $0.051.

Benzinga's Take: The move assumes significance as the ardent cryptocurrency community considers the ability to be able to move coins out of an exchange to a different wallet, where users have ownership of private keys, vital. Robinhood, alongside PayPal Holdings Inc. PYPL has faced criticism over such concerns, as they do not allow for such ownership.

Musk lent support to this idea earlier this month, as he bashed FreeWallet.