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- Backlogs had been cleared, and the system is back on track
- The exchange allocates 10% of all trading fees received into the fund as a way to protect client money in extreme cases
Binance is expected to suspend its withdrawal for a limited period given the stress it has been facing. However, the company said that it would maintain the funds of the traders in the cold storage.
Binance, the cryptocurrency exchange by volume has been under stress from quite a time, given the increasing number of new users and trading. Therefore, Binance was forced to suspend the withdrawal services for some time to make its system working up and running.
Changpeng Zhao, CEO, Binance, informed that due to user signups and trades jumping to a record high, the systems of Binance were a lot under stress. Friday was a roller coaster ride in the crypto market for traders as the crypto prices surged. The market showed the positive form after Elon Musk, Founder, Tesla Inc. added a bitcoin on his Twitter profile and posted a mock magazine cover of a whippet in a red sweater. It was misinterpreted as a sign of support for Dogecoin.
While talking to one of the media houses, Zhao said a shortage of Doge coins. There was a problem with the system as it could not generate enough new addresses fast to match new addresses coming in.
However, the Binance corporate account has later posted that all backlogs had been cleared and the system is back on track. The withdrawals are also about to stock. Till the time they have suspended the funds of the customers were safe. They were kept in a secure asset fund for users, and emergency insurance fund stored in a separate cold wallet. The exchange allocates 10% of all trading fees received into the fund to protect client money in extreme cases.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
