Binance halts withdrawals as new users flock


TL;DR Breakdown

  • Binance temporarily suspends withdrawal on its platform due to the surge in registration of new accounts. 
  • Crypto influencers say the crypto market cannot be shut down because it is decentralized.

Earlier today, Binance announced that it would be suspending withdrawals from accounts due to the surge in the numbers of new users registered with the crypto exchange. According to Changpeng Zhao (CZ), the platform experienced an “all-time high of everything.” 

Binance user funds are SAFU

The new wave of users were not only registering, but also making new transactions, and the system was said to require some time to come to terms with the happenings. Binance also stated that during this period, users should be rest assured that their funds are SAFU. SAFU is an acronym for Secure Asset Fund for Users, which is an emergency reserve that is held to protect invested assets. Investors would have access to this fund in case of a hack or any event that results in the loss of such assets.

The exchange team promised to keep its community of users updated about the withdrawal suspension. However, CZ has tweeted that the suspension is now lifted, and thanked users for exercising patience with the exchange.

Did Crypto influencers foresee this surge?

Several conventional trading platforms have been in the news lately because they decided to halt GameStop shares’ trading.

Robinhood, in particular, has been in the news because it decided to allow “selling only” for the trending shares of GME. This decision had generated some heat as many traders, and members of the crypto community became rightly enraged by the firm’s decision to censor trading.

Two crypto influencers, Barry Silbert and Max Keiser believed that these trading platforms’ rejected funds would generally find their way into Bitcoin and the crypto market. According to them, this market offers these traders a decentralized platform that is not subject to regulations and cannot be shut down.

Kamsi King

Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.

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