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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.

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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 (NYSE: GME) and AMC Entertainment Holdings Inc (NYSE: AMC) as retail investors carried out a short squeeze.

Tesla Inc (NASDAQ: 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. (NASDAQ: 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.

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