The big news in crypto land this week is that users cannot withdraw Dogecoin from Binance. Many potential explanations circulate online as to what is happening exactly. However, it is crucial to separate truth from fiction, even if the matter will take two weeks to resolve.
Binance Suspends Dogecoin Withdrawals
Anyone who has ever used the Binance crypto exchange will know that wallets will undergo regular maintenance. Moreover, during platform maintenance or upgrades, all withdrawals will stop working. In this case, however, the issue pertains only to Dogecoin, the world’s leading meme coin b market cap. It is one of the many assets listed on Binance, yet the only one you won’t be able to withdraw for some time.
According to Binance, the is an issue with the Dogecoin network. There was a recent network upgrade, for those not in the know, which doesn’t appear to affect other exchanges (yet?). Because of the issue – and its complex nature – Binance deems it safer to suspend withdrawals, affecting thousands of users. Withdrawing funds will be possible again in late November, between the 25th and 29th.
It is very interesting to see an exchange identify this issue and its time before operations can be resumed. Traditionally, a message says “until further notice”, yet this one is oddly specific. However, it appears the issue pertains to failed DOGE withdrawals being resent, crediting users with funds that are not theirs. Rectifying that situation will prove tricky, but it is not impossible.
It is not the first time a centralized exchange prevents users from accessing their funds. Nor will it be the last time. However, if there is an issue with users receiving illegitimate funds, that shouldn’t force Binance to prevent everyone else from withdrawing. It is a harsh decision that creats a lot of bad blood between the exchange and its users.
The Dogecoin Team Responds
When issues like these arise, there are often two sides to every story. The Dogecoin team claims they instructed Binance to invalidate the stuck transactions through replacement transactions. It doesn’t appear the exchange took these instructions to heart. The new Dogecoin update reduces commissions on DOGE transactions, yet none of the other major trading platforms has an issue at this time.
The bigger question is whether any funds will be returned to Binance. That seems likely given the two-week window, although it is unclear if withdrawals will resume afterward. Issues like these should never affect the end-users who had nothing to do with any funds being unstuck automatically, though. It is an example of why using centralized exchanges is far from ideal.
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