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Thursday, January 27, 2022

Binance Cracks Under Increased Demands From New Users Prompted By Elon Musk

Binance is the largest cryptocurrency exchange in the world according to the volume owned by them. Very recently, it has made a public announcement that it is going to suspend its withdrawals for a brief period of time in order to rectify its flaws.

Binance has stated that there is an enormous increase in demands from new and unique users. As a result, they have been unable to cope with this massive inflow of requests, leading to a suspension in withdrawals.

Enormous Demand Pressure On Binance

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Despite the suspension of the withdrawals, Binance did enable withdrawals for a few minutes before suspending the service once again.

Changpeng Zhao, CEO of Binance, had quickly made a tweet in order to reassure the users and made the claim that there are a few loading issues in their system resulting in this temporary suspension. In regards to the funds, he added that they are SAFU.

Additionally, it was not just Binance that faced this issue. Another crypto-based exchange called Kraken has also reported having connectivity issues. The users of Kraken were also complaining about the trouble while registering or signing in to their platform. Kraken’s latest update during the press time was that their platform is trying to resolve the issue.

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The cryptocurrency market has been undergoing this issue of large scale demand as compared to the usual trading volume on 29th January, Friday. Even Dogecoin witnessed a 10,000% increase in their trading volume leading to a more than 15% increase in the total volume of the market.

It was an eventful day for Bitcoin as well since it surged by more than $5,000 within a few hours after Elon Musk made an update to his Twitter bio note. In the past 24 hours, BTC was up by 16% and trading at $37,000.

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