CZ Responds to Bitcoin Outflow Withdrawals on Binance
The world’s largest cryptocurrency exchange, Binance, halted bitcoin withdrawals on May 8 for a few hours due to high volumes and processing fees.
Eventually, they processed the withdrawals at a higher cost. However, the exchange later claimed that the suspension was due to an excess of pending transactions resulting from insufficient incentives offered to miners to record trades on the blockchain.
Binance CEO, Changpeng Zhao, explained on Twitter that the network fees of Bitcoin had fluctuated by 18x in a month, sharing a screenshot of an article from TheBlockBeats.info that reported a nearly 18x increase in Bitcoin’s full-net handling fees from a month earlier.
In addition, Binance said in a tweet;
Our set fees did not anticipate the recent surge in (bitcoin) network gas fees. We’re replacing the pending bictoin withdrawal transactions with a higher fee so that they get picked up by mining pools.
Also, they stated, we need more information as to what has led to the large withdrawals […] to prevent a similar recurrence […] our fees have been adjusted.”
In March, Binance suspended deposits and withdrawals due to technical difficulties related to a bug in a trailing stop order. Despite this setback, Binance’s 24-hour trading volume, according to CoinMarketCap, was $6.9 billion, more than eight times larger than its biggest competitor, Coinbase, founded in 2012 by Brian Armstrong and Fred Ehrsam.
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