One news that made the headlines and drew the ire of no other than the DOGE enthusiast himself Elon Musk, was the temporal suspension of DOGE withdrawals after a bug was discovered in the recent update carried out by Binance devs. Of course, whenever you hear Dogecoin or its community is in trouble, Elon Musk “the defender” of the DOGE world will chip in a word or two.
Reasons for the Mishap
Binance and Dogecoin devs collaborated to release a report on the recent mishap, explaining the reasons for the temporal suspension of withdrawals from DOGE wallet for 17 days. In the report, the various developers attributed the problem to a combination of unlikely factors, which surprisingly affected only the Binance exchange.
Binance further explained that three factors led to the issue of DOGE holders withdrawing from the platform. It said if a platform listed DOGE in 2019 at v126.96.36.199, had transactions stuck in the wallet 3, and then had it upgraded to v188.8.131.52 and subsequently to v1.14.5, an issue can occur.
The world’s largest exchange examined all three factors, and resolved to build a new wallet, but DOGE holders will have to resend all the coins gotten from the mishap, something that Elon Musk didn’t take delight in. During the malfunction, Binance executed year-old transactions that were stuck on the platform due to low transaction fees, prompting the exchange to threaten DOGE holders to return the coins, even though the latter disclosed that they didn’t receive any coin whatsoever.
Binance then suspended withdrawals for the users involved. Musk accused Binance of mistreating its users for an error solely caused by the crypto exchange, branding the whole scenario as “shady”. Binance clapped back at the Tesla CEO by first apologizing for the inconvenience and second, taking Elon Musk down memory lane with a shared link from The Guardian about Musk’s recall of 12,000 cars that were believed to have communication problems.
Binance and DOGE Resolves the Issue
Last week, Binance devs revealed that they were building a new Dogecoin wallet from scratch to solve the issue. Today, the devs were finally able to complete it, prompting Binance to resume Dogecoin withdrawals.
Binance said its developers worked closely with Dogecoin developers to iron out the issue to avoid similar issue from occurring on the near future. Musk and Binance also resolved their differences, with the former saying he only pointed out the issue to the exchange.
During the fracas between Binance and Dogecoin holders, the Tesla billonaire warned Dogecoin users to be wary of centralized exchanges, asking them to withdraw their money from the various exchange so that they can control their own private key. He once tweeted that crypto wallets that prevents its users from controlling their funds should be discarded. Musk was referencing to the defunct Mt. Gox exchange that lost over 850k BTC to hackers in 2014.
Elon Musk has always spoken in favor of self-custody to avoid the issue of hacks. His advice to holders to leave centralized exchanges that didn’t permit users to control their funds 100% didn’t come at a surprise. With the issue resolved, Dogecoin users can resume holding and tweeting about the meme coin.