„That wasn’t Cash App’s decision – we wholeheartedly disagree with this move,“ the app tweeted.
Cash App, the Bitcoin-friendly mobile payment app from US financial services company Square, restricted purchases of some stocks linked to the short selling on Wall Street for over four hours
According to an announcement by Cash App, its clearing broker Axos has prevented the app from making stock purchases for GameStop, AMC Entertainment, Nokia and Koss Corporation. At least four of the stocks were boosted by retail investors on the r / Wallstreetbets subreddit in response to hedge funds short-selling. However, the app later tweeted that the broker had reopened trading for AMC and Nokia.
The company Crypto Engine initially said that it „wholeheartedly“ disagreed with Axos‘ approach. She added that she would try to allow users to purchase all affected shares „soon“ again. The platform didn’t mention a change in trading the shares of GameStop and Koss Corporation, but the GME price fell below $ 100 for the first time in a week, hitting $ 99.50 by press time.
Cash App tried to distance itself from possible allegations of market manipulation in the course of the GameStop short sales.
The restrictions on purchases, however, were similar to those on other trading apps last week
Robinhood announced on Thursday that it was suspending buying GameStop and others after many of its stocks soared. The trading app has lifted these restrictions to some extent, but users (as of yesterday) can still only buy one GME share .
Many people on social networks were more likely to blame Axos for these restrictions than Cash App. But they were still frustrated because of the parallels with Robinhood.
„Thanks for the transparency,“ said Twitter user Phoenix Williams. „Robinhood was in the same situation, but they chose to lie.“
Square founder and CEO Jack Dorsey tweeted in response to the restrictions, practically urging users to hold on to their assets despite the market chaos.