Mr. Changpeng Zhao, founder and CEO of Binance, under publication, mentioned that the platform was affected by the trading session and the entry of users.
The world’s largest cryptocurrency exchange was forced to temporarily suspend withdrawals earlier yesterday.
Zhao pointed out the problem and explained what had happened.
Tell “Zhao” by saying:
Binance has seen explosive growth in user traffic, trade volumes, deposit and withdrawal volumes, and system loads to its maximum capacity.
“Zhao” indicated that “Elon Musk” changed his biography on Twitter to Bitcoin earlier yesterday morning until the increase in traffic began.
Mask’s apparent support for bitcoin is attributed to its widespread influence in attracting new cryptocurrency categories and to the reason for the bitcoin price rise by 15%, which led to pressure on short sellers to reach $ 450 million.
Yesterday’s wild morning in the cryptocurrency market came with a period of uncertainty in the traditional markets.
Earlier this week, a group called “r / wallstreetbets” sent stock prices like “GameStop” and “AMC” to new highs, triggering a short squeeze that has cost hedge funds billions.
The stock and cryptocurrency trading app “Robinhood” has faced intense pressure from cryptocurrency enthusiasts, including cryptocurrency influencer Anthony Pompigliano and the Winklevoss twins who are trying to rally investors and traders toward alternative central trading platforms to “Robinhood” and decentralized trading platforms.
It is impossible, for us or for anyone, to assign a specific reason to some of the consequences in a free market.
We cannot say with certainty that Elon Musk’s change of his Twitter resume caused sudden price movements in Bitcoin, which in turn led to a significant increase in traffic to Binance, which then burdened parts of our systems, and caused some delays in Withdraw.
The CEO of Binance added:
Maybe the effect was “Elon” and maybe it was the “WallStreetBets” group, maybe it was some whales in Asia or Uganda, or 1,000 other possible causes.
There is no way to be 100% sure.
All this is likely, but who knows.
Another potential culprit, according to CZ, is the “Dogecoin” cryptocurrency that has seen significant gains over the past 24 hours.
The digital currency “Dogecoin” started out as a joke, but the recent increase in its price made it appear very real and has a value just like other alternative digital currencies.
The “Dogecoin” coin rose and reached more than $ 0.05 overnight and is witnessing at the present time the emptying at the same speed, as the currency’s price fell to $ 0.031, ie a decline of more than 50% in the last 24 hours.
“CZ” commented about it by saying:
We almost ran out of Dogecoin deposit addresses because the originators of the new addresses were not able to create new addresses for user deposits fast enough to match the deposits.
In terms of withdrawals, our natural number of nodes cannot handle the amount of withdrawals that occur too, we had to increase the number of nodes dramatically in a short period of time.
When there is similar exponential growth there are high chances of crowding.