Elon Musk, CEO and Founder of Tesla takes on Binance by addressing its CZ about the limits imposed on withdrawals. He mentioned that they should allow users to withdraw their funds in DOGE wallets without any restrictions or limitations as this would benefit Dogecoin (DOGE) holders greatly.
In his personal Twitter handle, Musk tweets, “Hey @cz_binance, what’s going on with your doge customers? Sounds shady.”
The issue with Binance has been a huge inconvenience for crypto enthusiasts. The exchange’s new meme-inspired coin wallet caused delays in withdrawals, but they’re now resolved after less than one week.
The exchange is yet to provide more details or an exact time when these withdrawal limits will be removed. This leaves many wondering if they should cash out their Bitcoin before then, as it could lead to a huge loss in value for customers who took the risk of trading cryptocurrency with fiat currency rather than using exchanges that offer spot liquidation options on markets where prices are down significantly from peak values.
Prices’ Flash Crash
The cryptocurrency landscape has been volatile. Last month, Bitcoin briefly dipped below $8,200 after suffering one of its largest flash crashes in recent memory to take some traders by surprise and cause panic selling across other coins as well. People were not deterred by this event and continued trading with ease because they know that crypto markets can be unpredictable so it’s best just stay put until things settle down.
Speaking to many media outlets via email, the exchange mentions, “One of our institutional traders indicated to us that they had a bug in their trading algorithm, which appears to have caused the sell-off.”
“We are continuing to look into the event but understand from the trader that they have now fixed their bug and that the issue appears to have been resolved.”
The flash crash took place on Binance’s US affiliate, exact time, you rightly ask? At 7:34 am New York time. The exchange was immediately notified and they launched an investigation into what caused it.
The price of Bitcoin on Kraken suddenly plunged to $54,000 before quickly recovering. The effect was seen across other crypto exchanges as well with many traders fearing that the market may be in for more losses and selling their coins off at lower prices than they would hope. Coincidentally, the founder and CEO of Binance had warned investors about high crypto volatility in the coming months, coincidentally leading up to a significant drop in their exchange.
Though, flash crashes on the crypto market are not a new phenomenon. Though these events have been happening for some time now traders need to be aware of what will happen if they enter into an order that is too low or high when markets move quickly because it might cause your trade to get canceled out without notice.
With all the recent PUBG hacks and glitches in cryptocurrency exchanges, it’s no wonder that people are becoming more aware of how risky this line of work really is. Many users have lost money when their accounts were compromised by hackers or due to technical issues with most platforms having downtime on multiple occasions since 2017 which resulted in customers’ funds being stolen right out from under them – sometimes even without user knowledge.