Binance has announced that it will be resuming Dogecoin withdrawals after limiting the capability for users on the platform. The announcement came on Monday when the crypto exchange revealed that it had finally solved the issues that led to it closing Dogecoin withdrawals in the first place. The crypto exchange also used the opportunity to dive deeper and explain the reason behind the limitation in the first place.
What Led To The Issues
In the blog post, Binance gives its users further insights into what went on behind the scenes. The crypto exchange explained that the recent Dogecoin Core upgrade had been the culprit. For exchanges that had supported the meme coin as far back as 2019, they ran into issues when they upgraded to the latest version, which Binance did and the issues arose.
“In short, if 1) your platform had listed DOGE all the way back in 2019, at v1.14.0 2) had transactions stuck in the wallet 3) had upgraded the wallet to v1.14.2 4) AND then updated to v1.14.5 — you can have an issue.”
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The exchange explained that it had checked off all the marks that would see them run into the issues that they did, which inadvertently led them to limit Dogecoin withdrawals on the exchange.
Basically, the upgrade caused all of the Dogecoin transactions that had been uncompleted due to insufficient gas fees to re-initiate. This means that user accounts were issuing Dogecoin withdrawals even though they had no Dogecoin in their balances. So, the only logical step was to limit withdrawals for the users.
DOGE trading at $0.21 | Source: DOGEUSD on TradingView.com
Binance also discounted all of the speculations that something shady was going on behind the scenes that led to it limiting Dogecoin withdrawals. “It was an unlikely and unfortunate coincidence for Binance, the DOGE network, and DOGE hodlers. If we at Dogecoin Core maintainers and Binance had tried to plan this, we simply would not have been able to — not quite the shady circumstances that some had suggested,” the statement read.
Musk And Binance CEO Battle Over Dogecoin
Binance lifting the Dogecoin withdrawal restrictions comes after its CEO Changpeng Zhao got into a Twitter spat with Elon Musk. Musk had taken to the platform to call out Binance’s move to limit withdrawals for the meme coin, which he pointed out was “shady”.
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Binance had simply replied to Musk’s allegations to say that there was nothing going on. They explained that the situation was “just frustrating and we’re working on it.
Not long after, CEO Changpeng Zhao took to Twitter to issue an explanation to the Tesla CEO, while also assuring the community that they were working on restoring the feature. What followed was a mini-Twitter war as both CEOs went at each other over the restricted Dogecoin withdrawals on the platform. However, in the end, Musk walked away satisfied with the various explanations put forward by Zhao.
Featured image from Coinpedia, chart from TradingView.com