Amid the decline of the FTT token, Bitcoin and altcoin exchange FTX is currently receiving backlash from users for its slow withdrawals. It is also stated that withdrawals are limited to $ 1,000.
Users are having trouble with the Bitcoin exchange
Given the complaints, the crypto exchange responded on its official Twitter account, assuring users that everything was fine. However, FTX stated that the node throughput for Bitcoin withdrawal is limited. While some users responded with tweets promising support for FTX, others expressed their skepticism. One user said that the exchange’s response showed that “everything is not okay”.
In its Twitter threads, FTX reassured users that matching engines and nodes were running smoothly. He also said that stablecoin transactions are slow as banks are closed for the weekend. However, they said they changed the process to increase the speed.
$1,000 restriction
The main reason behind the huge withdrawal wave is that investors fear that the stock market is technically bankrupt. Worrying about not being able to withdraw money in case of bankruptcy and the risk of their money staying in the stock market. FTX currently states that a particular network is congested. As such, it has limited withdrawals on Ethereum and other assets. Allegedly, some users cannot make more than $1,000 in a single transaction. This creates an awkward situation where traders have to divide a $1 million transaction into 1,000 transactions. However, it is worth noting that these are user claims.
The potential bankruptcy of a stock market can be a disaster for both investors and the market in general. Large outflows of funds from exchanges used by both individual and institutional investors can seriously affect the market. Meanwhile, Reddit users expressed their concerns about the development of the FTX event. They compared the situation to Celsius suspending withdrawals.
What had happened?
Challenges follow statements of Binance’s intention to liquidate its FTT holding. cryptocoin.com As we reported, Binance CEO tweeted on November 6th of his plans to liquidate all FTT holdings. The CEO stated that this is a risk management strategy with lessons learned from the Terra crash. On-chain data showed that an unknown wallet transferred 23 million FTT worth $520 million to Binance.
Meanwhile, around 20,000 Bitcoins have been moved from FTX to Binance in the past two days. Thus, Binance’s total Bitcoin holdings have risen to over 640,000. Meanwhile, FTX’s BTC holdings have dropped from 80,000 coins at the beginning of 2022 to 6,000 BTC as of November 8.
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