Binance Freezes Doge Withdrawals.
XUSD Blockchain Holdings
Binance Freezes Doge Withdrawals. Users Asked to Return Coins They Don’t Have
This past Thursday Nov-11, Binance, the world’s largest crypto exchange by trading volume, temporarily suspended withdrawals of DOGE following a recent upgrade that didn’t go so well, the company said.
In their defense, exchanges including ours are constantly undergoing upgrades and tweaks. The digital ecosystem moves at such a pace you just can’t tap the brakes and ask everyone to wait. It’s like trying to shake out your welcome mat while someone is standing on it. Back to Doge, albeit a coin, the only thing that’s backing it is good marketing.
Seriously, is Dogecoin backed by anything?
Some cryptocurrencies are backed by the US dollar, such as Tether ( USDT). There are altcoins that are backed by Gold, such as Digix Gold Token (DGX) and XUSD Blockchain Holdings ( XUSDP ) and ( XUSDG ) which are both gold-backed. In fact, XUSDG is actually tied to the London Fix. However, I’m sorry to say Dogecoin is neither backed by the US dollar nor backed by Gold but the doggy is real cute! WOOF!
Back to Biance that goes on to say, “They discovered a minor issue with DOGE network withdrawals on their network after carrying out a version update on October 21 2021,” Binance said in a post on Thursday morning without specificity what the “minor issue” was. “As a result, we have temporarily suspended the DOGE network withdrawals until this issue is resolved. Binance is actively working with the DOGE project team to resolve the issue.”
Unfortunately, the upgrade appears to have created significant problems for some of Binance’s users. Those users claim that their exchange first initiated the withdrawal of dogecoin without their consent, and is now asking their users to return the dogecoin that they don’t have in their Binance accounts per CoinDesk.
Screenshots shared with CoinDesk by several Binance users show that Binance asked them to return DOGE to the exchange, or else their withdrawal function on the exchange would remain deactivated. But the affected users said they didn’t even have any DOGE in their Binance accounts to return. What to do, what to do?
So you think you know Crypto?
XUSD knows firsthand how incredibly difficult it is to launch a token, acquire a live market price then inject it into the market so we really feel sorry for Dodge and their users. Creating a digital “coin” isn’t too difficult but designing the infrastructure for a gold-back instrument with certifiable assets is another story. For one, not too many people are that well connected, have a team of geniuses, or have a forward-looking plan.
In a tweet thread on Thursday by a Twitter account representing the dogecoin developers, the developers explained that the initial withdrawal transactions appear to have been follow-up attempts to carry out requested transactions from years ago that were “stuck” because of “insufficient fees.”
The developers are suggesting the Dogecoin upgrade may have also triggered historical transactions, according to the tweet thread. On the upgrade’s GitHub page, it said the upgrade made a final “a new minimum fee recommendation” for all participants on the network; the developers therefore believe that the transactions that got stuck appear to have been retried, even when the users no longer own the coins.
The Dogecoin developers claimed that they tried to work with Binance when the exchange first reached out over a year ago on the “stuck transactions,” but they “were not notified as to whether or not [Binance] followed” their instructions to fix the problem. Be on the lookout for some level of regulation with crypto markets in the future as this type of boo boo would be hell to pay if this was on the Nasdaq.
BTW - Binance didn’t immediately respond to requests from CoinDesk.
At the end of the day, no one wants to hear about a bunch of finger-pointing and CYA statements. Best advice I can provide other than be as patient as possible with your service providers. These people are providing a hell of a service in a fast-paced environment. No one is perfect, mistakes are bound to be made and feathers are going to ruffle. Getting upset accomplishes nothing.
Brought to you by the Crypto Kings on Pat Gwinn Radio Tunes & Talk.
Article Source: CoinDesk - https://tinyurl.com/792vnth4
Article edited and commented by XUSD Blockchain Holdings LLC.