Controversy-laden Robinhood to enable crypto deposits and withdrawals

Controversy-laden Robinhood to enable crypto deposits and withdrawals

Online brokerage app Robinhood revealed its intention to support cryptocurrency deposits and withdrawals on Wednesday. Many crypto enthusiasts criticized the move, calling it a gimmick to regain credibility in crypto communities.

Robinhood in a series of tweets noted that it “fully intends” to provide the extra functionality. Although customers on the platform already had access to buy and sell cryptocurrencies, they couldn't transfer their digital assets to other wallets.

So far, no dates or specifics have been given as to when the new functionality will be activated. However, the trading platform was quick to state that deposits would be held in the company’s own wallets.

Robinhood currently supports seven cryptocurrencies, including Bitcoin, Ether, Bitcoin Cash, and Dogecoin. It is still unclear whether they will roll out support for all seven coins at the same time, or increase the number of supported digital assets upon launch.

Responding to earlier claims that Robinhood is a major Dogecoin whale, the firm affirmed that it “does not currently invest in cryptocurrency or use any customer cryptocurrency” for its own benefit.

On January 29, the trading platform came under heavy fire after suspending instant fiat deposits. This came after the firm restricted the purchase of several selected securities offered on its platform. On February 4, Robinhood reopened its doors to accept deposits for crypto purchases. Judging by comments on Twitter, the platform has lost its credibility in the eyes of many retail investors.

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