Cash App, the Bitcoin-friendly mobile payments app from Square, has halted purchasing stocks for GameStop, AMC Entertainment, Nokia, and Koss Corporation, as four of the stocks pushed by retail investors on the r/WallStreetBets subreddit in their fight against hedge funds’ shorts.
It has been reported that the app later tweeted that the broker has restored trading for AMC and Nokia.
Our clearing broker, Axos, has resumed the ability to buy $AMC and $NOK through Cash App today. We’ll provide an update if the situation changes. Thank you for your patience and understanding. — Cash App (@CashApp) February 2, 2021
However, Cash App initially said that it “wholeheartedly” disagreed with Axos’ actions and added that it would attempt to allow users to purchase all the affected stocks “as soon as possible.”
The report said that the platform has not mentioned any change in the status of trading GameStop and Koss Corporation stocks, but the price of GME fell under $100 for the first time in a week, reaching $99.50. Though it appeared that Cash App was trying to distance itself from any possible allegations of market manipulation in the wake of the GameStop short sells, the restrictions on buys were similar to those imposed by other trading apps last week.
Wait, Cash App halted buys on GME and AMC earlier too? It’s true, but the company claims it was not their decision. Instead, it was their clearing broker, Axos. https://t.co/QTSFZVVhxx — Cointelegraph (@Cointelegraph) February 3, 2021
Many on social media seemed to place the blame for restricting trading on Axos rather than Cash App, but they still expressed their frustration after the parallels with Robinhood.
Twitter user Phoenix Williams, said:
“Thank you for the transparency. Robinhood was under the same situation but they chose to lie.”
Thus, Jack Dorsey, the founder and CEO of Square, tweeted a message to his 5.2 million followers in response to the trade restrictions, essentially telling users to hold their assets amid the chaos in the market.
💎🤲 https://t.co/YlEXScy74y — jack (@jack) February 2, 2021