Binance halted BTC withdrawals which created panic!
Hi HODLers and Hiveans,
The big news of the weekend involved Binance and Bitcoin.
Cryptocurrency exchange Binance temporarily paused Bitcoin withdrawals on its platform on Sunday, preventing the largest token by market cap from leaving the leading venue by trading volume.
You can find official tweets from Binance below:
https://twitter.com/binance/status/1655402071435411457
For thismorning pause and despite the FUD, Binance announced an hour later that Bitcoin withdrawals had resumed! Wooooof....
Nevertheless, I understood that they paused again withdrawals an hour ago. It seems they will also be processed later on but we never know in this crazy crypto and banking worlds!
Mem Pool is congested
A mempool is an area where transactions on the Bitcoin network “wait” before being verified by each blockchain node.
Nevertheless, Bitcoin outflows from Binance are quite scary and I hope it won't make it similar to a SVB bankrun style...
Bitcoin price was down slightly after these events but is now stavilizing.
Stay safe out there,
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Apocalypse
But not now. 😉 All fine.
Run for your life! You will be ahead of us as you run faster
Something fishy is probably happening for Binance to halt BTC withdrawals temporarily twice. We've had enough drama and don't want some sh*t blowing up again.
We can’t have another CEX blow up. We just can’t!
The mempool congested due to a new token standard, BRC-20. These tokens (there are already >8000 of them, including the famous "Pepe"-Memecoin) created so much volume & traffic on the base layer, that the transaction fees skyrocketed. Those high fees then created the troubles for Binance.
https://thebitcoinmanual.com/articles/brc-20-tokens/
Thanks for the information, I did not know these meme coins were on the Bitcoin blockchain. It explains a lot then!
Maybe is a wise decision not to stay your crypto on Binance and just the one you intend to trade.
Yup! I Definitely have 0 exposure to Binance at the moment.