According to the players in the crypto environment, it's only a matter of time before other various cryptocurrency exchanges will decide to pause withdrawals.
On June 13, the world’s largest crypto exchange Binance stated that it resumed withdrawals of Bitcoin (BTC). The “restart” was announced after roughly three hours.
The news comes after the CEO of Binance Changpeng Zhao (CZ) issued an announcement earlier that the crypto exchange would be temporarily pausing Bitcoin (BTC) withdrawals. However, after several hours, Binance implied that “withdrawals on the Bitcoin (BTC) network have now resumed.”
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“Binance team is working on a long-term solution to accelerate pending transactions on the Bitcoin (BTC) network and prevent similar situations in the future.”
Even though the crypto exchange has managed to resume Bitcoin (BTC) trading, another major cryptocurrency lending and staking firm Celsius has not resumed withdrawals and exchanges between accounts since Monday. The organization recently added:
“We are taking this necessary action for the benefit of our entire community in order to stabilize liquidity and operations while we take steps to preserve and protect assets.”
Since then, Celsius Coin (CEL) has fallen roughly 53% of its value.
Moreover, Tether recently issued a statement regarding the fall of CEL implying that it won't have any impact on USDT reserves, emphasizing that the firm’s “lending activity with celsius has always been overcollateralized and has no impact on our reserves.”
The initiatives to pause withdrawals arrived during the current crypto market turmoil. For instance, the Bitcoin (BTC) price had fallen under $23,000, whereas Ether (ETH) had plummeted to as low as $950 on a crypto exchange dubbed Uniswap.
On top of that, a number of people in the crypto community have shown their concern over various crypto exchanges pausing withdrawals. For instance, one Twitter user implied that the American-based exchange platform Coinbase is next in line to go offline: