Bitcoin

EToro warns users that due to unprecedented demand, there are no more cryptocurrencies available to trade

The Israel-based exchange platform According to an email sent to users today, eToro is struggling to keep up with demand from cryptocurrency traders..

“Unprecedented demand coupled with limited liquidity challenges our ability to support orders over the weekend.”

As a result, The platform warns of “possible restrictions on orders to buy cryptocurrencies”. and that “the margins of crypto assets can also be much wider than usual.”

EToro has become a victim of its own success. Marketing Director Brad Michelson announced this yesterday 380,000 new users were added in the last 11 days Accounts and that the volume of trade had increased 25 times more than at the same time in 2020. As of January 9, eToro had more than 17 million registered users.

EToro warns users that due to unprecedented demand, there are no more cryptocurrencies available to trade
EToro warns users that due to unprecedented demand, there are no more cryptocurrencies available to trade

Quantum Economics founder Mati Greenspan, a former market analyst at eToro, told Cointelegraph as much The warning was “a symptom of a possible impending financial crisis”.. He advised users of Twitter that they will not try to move money off the platform.

If eToro implements the planned measures, the maximum risk to users per cryptocurrency is limited and they may not be able to place new orders.. Greenspan stated that this simply means that some users “may have to wait to buy”.

Last week, The exchange has deterred European users from margin trading due to increased market risks and increase The minimum deposit amount is 400% up to $ 1,000 to stay one step ahead of new user registrations.

The trading volume is also increasing on other exchanges;; Coinbase’s daily volume was $ 9.5 billion on Jan. 12, an increase of more than 50% from its all-time high of $ 6.5 billion on Jan. 9. Binance also passed its high of $ 23.7 billion, posting more than $ 30 billion on Jan. 12.

It is only a matter of time before other exchanges run into liquidity issues.Greenspan believes and adds that It is “very likely” that we will see this situation on other platforms in the near future.

Concerns about the limited supply of Bitcoin available have come to the fore over the past six months due to investment giant Grayscale, which has taken over Bitcoin at an alarming rate.. The company now has $ 20 billion under its control as its Bitcoin (BTC) purchase outpaced mining production by nearly three to one in December 2020.

Similar Posts