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Robinhood just did something to help Dogecoin. Here’s what happened

Dogecoin has had a massive issue, according to Mark Cuban. But it appears Robinhood has made a change

The logo for the Robinhood app on a smartphone in New York.
This Thursday, Dec. 17, 2020, photo shows the logo for the Robinhood app on a smartphone in New York. Dogecoin has had a massive access issue, according to Mark Cuban. But it appears Robinhood has made a change to help solve it.
Patrick Sison, Associated Press

The Robinhood app will soon make a change that could help Dogecoin investors spend the money they’ve earned by investing in the cryptocurrency.

What Robinhood did for Dogecoin

Robinhood CEO Vlad Tenev said the Robinhood app — which allows people to trade and invest in cryptocurrencies — will try to make it so that people can easily withdraw and deposit cryptocurrency, according to Business Insider.

This is in reference to Dallas Mavericks owner Mark Cuban, who said Dogecoin’s biggest problem is that the people who invested in it can’t spend or withdrawn their holdings from Robinhood.

  • “The greatest inhibitor to its growth is that you can’t spend the Doge you buy on Robinhood,” Cuban tweeted.

Why can’t you spend Dogecoin?

Right now, the Robinhood app allows people to buy and sell cryptocurrency, but you can’t withdraw the crypto or access it for spending. according to Business Insider.

For Dogecoin investors, this means they can’t spend or use holdings they got from Dogecoin’s recent spike.

  • “Any holdings of Dogecoin, or other cryptocurrencies, on Robinhood are therefore effectively locked away and cannot be used to buy goods or services,” according to Business Insider. “This means investors and users of cryptocurrencies must have a separate account elsewhere if they wish to use their holdings in everyday life.”

This is why experts have said Dogecoin is a community-based movement since there’s not much value in owning holdings you can’t spend, as I wrote for the Deseret News.

  • “An investment in Dogecoin is not about making money (although it may happen accidentally) it’s about being a part of something bigger,” according to Benzinga.