Binance stops withdrawals when new customers congregate

TL; DR breakdown

  • Binance is temporarily suspending the payout on its platform as new account registrations are increasing sharply.
  • Crypto influencers say the crypto market cannot be closed because it is decentralized.

Binance announced today that it will suspend account withdrawals due to the increase in the number 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 not only registered but also carried out new transactions and it was said that the system would take some time to deal with the events. Binance also stated that during this period, users should be sure that their funds are SAFU. SAFU is an abbreviation for Secure Asset Fund for Users, an emergency reserve that is held to protect the invested assets. Investors would have access to this fund in the event of a hack or event leading to the loss of such assets.

The exchange team promised to keep their user community informed of the suspension of the payout. However, CZ tweeted that the suspension has now been lifted and thanked users for their patience with the exchanges.

Did Crypto Influencers Foresee This Rise?

Several conventional trading platforms have been in the news lately because they decided to stop trading GameStop stock.

Robinhood, in particular, was in the news because it decided to sell “only” for the trending stocks of GME. That decision had generated some heat to so many traders, and members of the crypto community were rightly angry about the company’s decision to censor trading.

Two crypto influencers, Barry Silbert and Max Keizer, believed that the rejected funds from these trading platforms would generally find their way into Bitcoin and the crypto market. Accordingly, this market offers these traders a decentralized platform that is not subject to any regulations and cannot be closed.

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