As Bitcoin Crashes, Binance Halts Withdrawals (13th June 2022). Source: Futurism. The__Byte

Posted by

Futurism

Selloff

As Bitcoin Crashes, Binance Halts Withdrawals

Futurism

This sounds a whole lot like the Great Depression.

Falling Fast

The world’s largest crypto exchange had to pause Bitcoin withdrawals as the currency drops precipitously for the second time in 2022 — mirroring, of course, runs on banks in which consumers try to withdraw money in the face of institutional insolvency or economical collapse.

On Twitter, Binance CEO Changpeng Zhao announced Monday morning that Bitcoin withdrawals were on a “temporary pause” due to a “stuck transaction causing a backlog.” Though Zhao didn’t mention it, this news came less after Bitcoin and Ethereum’s value once again began plummeting, erasing $200 billion from the crypto market and landing at prices so low that they haven’t been seen for years in the volatile world of blockchain.

After claiming the issue would be fixed within 30 minutes, the Binance CEO later exacerbated the drama by saying the issue was “going to take a bit longer to fix than my initial estimate.” The exchange finally resumed withdrawals late this morning, but user confidence may be hard to regain after failing at such a crucial moment.

Stuck It Up

Investors and critics alike were pretty freaked out.

“Just so you crypto guys know,” one user tweeted, “‘stuck transaction’ isn’t a thing.”

Another joked that “there’s going to be so many repossessed funko pops filling up warehouse in a week’s time.”

Run the Bank

“Thanks to modern blockchain technology,” one user joked, “we can have 1931 bank run panics in the convenience of cyberspace.”

Jokes aside, this Bitcoin crash — and the way it’s affecting exchanges — is bad news. Many are unquestionably going to buy the dip— but that strategy may end very badly for them.

READ MORE: Binance pauses bitcoin withdrawals due to a ‘stuck transaction’ as crypto sell-off deepens [CNBC]

More on Binance: Huge Crypto Exchange Reveals Emoji That’s Clearly a Swastika

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s