Changpeng Zhao, founder and CEO of Binance, touched on the recent download issues that affected the platform during peak trading and new user entry.

The world’s largest cryptocurrency exchange was forced to temporarily suspend withdrawals earlier yesterday.

Zhao pointed out the problem and provided an explanation of what happened.

Withdrawals are suspended again. System loading problems. money #Row. It should be fixed again soon.

– CZ 🔶 Binance (cz_binance) January 29 2021

Tell Zhao:

Binance has experienced tremendous growth in user traffic, trading volumes, deposit and withdrawal volumes, and system loading to its maximum capabilities.

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Zhao noted that as soon as Elon Musk changed his Twitter bio to Bitcoin earlier this morning, the traffic started to surge.

Musk’s apparent endorsement of bitcoin has been widely credited with attracting new crypto classes and causing a 15% rise in the price of bitcoin, putting pressure on short sellers to reach $450 million.

Yesterday’s wild morning in the cryptocurrency market brought a period of uncertainty in the traditional markets.

Earlier this week, a group called r/wallstreetbets sent stock prices like GameStop and AMC to new highs, triggering a brief squeeze that cost hedge funds billions.

Stock and cryptocurrency trading app Robinhood has faced intense pressure from crypto enthusiasts including crypto market influencer Anthony Pompliano and the Winklevoss twins who are trying to rally investors and traders towards Robinhood’s alternative central trading platforms and decentralized exchanges.

CZ stated:

It is impossible, for us or anyone, to assign a specific cause to some outcome in a free market.

We can’t say for sure that Elon Musk’s change of his Twitter bio caused sudden price moves in Bitcoin, which in turn led to a significant increase in traffic to Binance, which then overburdened parts of our systems, and caused some delays in clouds.

Read:Paypal, MasterCard and Visa leave Russia and suspend their services in light of the ongoing war

The CEO of Binance added:

Maybe it was Elon’s influence, maybe it was WallStreetBets, maybe it was some whales in Asia or Uganda, or 1,000 other possible causes.

There is no way to be 100% sure.

All this is likely, but who knows.

Another potential culprit, according to CZ, is Dogecoin, a cryptocurrency that has seen significant gains in the past 24 hours.

Dogecoin started out as a joke, but the recent increase in its price has made it look very real and have the same value as other altcoins.

The “Dogecoin” currency rose and reached more than 0.05 dollars on the eve of the victims, which is currently witnessing an emptying of the same speed, as the price of the coin fell to 0.031 dollars, a decline of more than 50% in the last 24 hours.

Read:More than 75% of financial institutions intend to use cryptocurrency in the next three years

CZ commented about it by saying:

We almost ran out of Dogecoin deposit addresses because the generator of new addresses weren’t able to generate new user deposit addresses fast enough to match deposits.

In terms of withdrawals, our normal number of nodes cannot handle the amount of withdrawals that occur as well, we had to increase the number of nodes significantly in a short period of time.

When there is similar exponential growth, there are high chances of crowding.

Read also:

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