In the heat of the ongoing dispute between Binance and FTX, customers on the FTX platform seem to be gripped with fear as it becomes difficult to withdraw Bitcoin and other stablecoins. The CEO of the FTX platform clears the fear of customers, assuring them that the matching engine is working very well. However, the technical problem behind the liquidity failure of Bitcoin is due to inadequate throughput on the nodes of the platform.
In response to the technical difficulties, the platform is now trying to adopt the method of processing Bitcoin transactions from both ends. This will help to speed up transactions.
Dispute Between FTX and Binance
Binance is the largest crypto exchanger in the world while FTX is the third largest. In the past few days, rumors about a liquidity crisis on the FTX platform struck fear in the heart of their customers. To make the matters worse, Binance, on the 6th of November, sold holdings of FTX worth $529 million. In response to this, the CEO of FTX accused Binance of attacking them with false news. They assured people that all is well with the platform and there is no cause for alarm. However, on the 8th of November, an agreement was reached for the taking over of FTX by Binance. FTX may indeed be facing a technical crisis as research reveals that the platform’s crypto holding has fallen by 83% in about 2 days. This could be a contributing factor to the liquidity problem faced by customers on the platform.
Learn from the market wizards: Books that will take your trading to the next level