Cryptocurrency exchange Binance has again announced that it is temporarily stopping the withdrawal of ETH and ERC20 tokens from the platform due to “network congestion.”
Today, February 23rd, cryptocurrency exchange Binance announced in its account at Twitterthat “temporarily suspends the withdrawal of ETH and Ethereum-based tokens due to high network load.”
Rest assured funds are #SAFU and we apologize for any inconvenience caused.
Updates to follow.
– Binance (@binance) February 23, 2021
A little over an hour later reportedthat the withdrawal has been resumed.
It is noteworthy that this is the second such precedent in the last week. Earlier, the editorial staff of BeInCrypto already said that on February 19, Binance also suspended the withdrawal of Ethereum and all ERC20 tokens. At that time, the exchange also referred to “overload”.
In both cases, Binance assured investors that their funds are completely safe, but did not provide any further details regarding the incidents.
How do you feel about reports of such “network congestion”? Share your opinion in the comments and join the discussion in our Telegram channel!
Good old switch
During the first incident on February 19, blockchain analyst Larry Kermak notedthat network Ethereum experienced no obvious overload problems. Moreover, he said that he could not withdraw his ETH coins from the exchange before the announcement of the congestion.
At that time, the Ethereum (ETH) rate was updating all-time highs and was preparing to break the important psychological barrier of $ 2000. However, as a result of this suspension of withdrawal of funds, the ETH rate remained stuck below $ 2000. Meanwhile, the native coin of the Binance Coin (BNB) exchange, which was also actively growing at that time, managed to strengthen by $ 60.
This situation made many people think about the true reasons for such actions and gave rise to some suspicions that the exchange is practicing a fraudulent scheme of fictitious trading. wash trading, creating the appearance of activity and artificially inflating BNB trading performance.
Fuss around gas
Meanwhile, the cost of gas required to pay for Ethereum transactions continues to be a sensitive issue amid the rally in the ETH rate. Moreover, as we said the day before, gas commissions have renewed their historical highs again, soaring in some cases to $ 50 and above.
The BeInCrypto editorial staff already wrote on February 18 that in just one week, Binance had to pay almost $ 10 million in fees for making transactions with Ethereum. These costs turned out to be the largest among similar indicators of other crypto exchanges.
Average gas price on the Ethereum network. Source: YCHARTS
Currently, the Ethereum rate has collapsed from a historic high of $ 2,040 and sank to the $ 1,450 area. This collapse triggered a massive liquidation of positions on the crypto market. Investors have liquidated over $ 5.5 billion in positions over the past 24 hours, according to Bybt.
Liquidation of positions. Source: Bybt
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