Binance, the biggest cryptocurrency platform in the industry, has announced the temporary suspension of Dogecoin withdrawals on the DOGE network. The announcement followed numerous complaints from Binance traders who complained about facing challenges while trying to initiate Dogecoin withdrawals. Following the announcement, Binance has put the withdrawal on hold and set its engineers to resolve the situation.
The announcement was made through a short post on the Binance website on Thursday. In the post, Binance said that the issue was a small one but did not specify what it was. It further said that it had begun working on the issue to find a solution and restore normal processes. Binance also advised traders about the risk and potentials of trading cryptocurrencies. The post seemed to downplay the issue and its consequences.
But for many users, it is weighty and has them worrying over their funds. Some Binance users said that they entered the withdrawal portal to find withdrawal orders initiated without their knowledge. They further said that the exchange requested that they return the Dogecoin or face permanent restrictions on DOGE withdrawals.
Stunned and unsure, many quickly opened support tickets to lodge their complaints. Binance responded quickly by allaying fears and suspending withdrawals on the network.
DOGE Developers Offer An Explanation
The DOGE Developers Association was the one who provided a logical explanation for the glitch, putting Binance users at ease. The organization communicated via Twitter. According to the statement, one possible explanation for the glitch was that the platform attempted to perform follow-up attempts on older transactions that failed due to insufficient gas fees. It was noted that the transactions were from years ago and were requested by the users who encountered the glitch.
Given that the network upgrade resulted in a change in network transaction fees, that explanation seems plausible. DOGE implemented a network upgrade that altered the transaction fee and established a new minimum amount. The new minimum amount may have prompted the network to retry older transactions that failed due to insufficient funds at the time they were initiated.
To close their statement, the association said that it had informed Binance about the potential issue last year, and gave them instructions on how to fix the glitch but they never received feedback from Binance about the problem.
Slight Panic Among Binance Users
Binance users were left in a slight panic as they struggled to grasp the situation. While some rightly spotted the situation as a network glitch, many others were scared Binance accounts had been compromised.
But a quick search on the transaction history showed no recent DOGE transactions, prompting users to think along the lines of a network glitch. As of press time, Binance is yet to offer an update about the situation. However, DOGE withdrawals on other networks are working fine and Binance users can use them.
Safety continues to be a priority for cryptocurrency exchanges. Recent phishing attacks have left many crypto investors in pain and more must be done to ensure that neither glitches nor malicious attackers cause inventors to lose their funds.