At a time when Bitcoin price is quickly dropping, exchange BINANCE said there was a Bitcoin-related backlog on the platform. On Monday, the total market capitalization of cryptocurrencies fell below $1 trillion. At its peak in November last year, the total market cap of the industry was $3 trillion.
Temporary Pause On Bitcoin Withdrawals
Binance said it was imposing a temporary pause of Bitcoin withdrawals due to a backlog in transactions. Most importantly for the relief of the traders, the user funds were said to be safe. Initially, the situation was expected to be fixed in less than 30 minutes. Binance CEO CZ tweeted,
“Temporary pause of $BTC withdrawals on #Binance due to a stuck transaction causing a backlog. Should be fixed in ~30 minutes. Will update. Funds are SAFU.”
The term ‘Safu’ stands for Secure Asset Fund for Users. In July 2018, Binance established Safu, which is an emergency insurance fund meant to protect user funds.
However, he later said the fix to Bitcoin withdrawals was likely to take a bit longer than the initial estimate. Also, the transaction backlog is impacting only the Bitcoin network. Users could still withdraw Bitcoin on other networks.
