Tesla CEO Elon Musk, one of the world’s biggest Dogecoin fans, took to Twitter on Tuesday to bring up issues related to DOGE withdrawals on Binance. Tagging Binance CEO Changpeng Zhao, Musk wrote: “What’s going on with your Doge customers? Sounds shady.”
Binance’s official Twitter account took about 30 minutes to respond, arguing that there’s nothing shady with the issue and citing a fresh Twitter update regarding the problem. “The root cause is a technical issue during the recent upgrade process that caused old transactions to be resent to 1,674 users,” Binance said.
As a result of the issue, some Binance users have received old transactions, while some could not withdraw their Dogecoin. “We’ve kindly asked those that receive the old transactions to return them, but we’re aware that select users are having trouble accessing some of the wallets.
The firm went on to say that the issue occurred exclusively on Binance as the platform has a “different technical wallet set-up for DOGE.” In order to fix the problem, Binance will have to rebuild the wallet entirely, which could take “another week or so,” the firm noted.
Apparently not being satisfied with Binance’s response, the Tesla CEO continued attacking the exchange, stating: “Doge holders using Binance should be protected from errors that are not their fault.” Musk also cited a thread by Dogecoin Developers explaining that the issue started a “bit over a year ago.”
Doge holders using Binance should be protected from errors that are not their fault— Elon Musk (@elonmusk) November 23, 2021
Binance CEO Zhao subsequently joined the thread, stating that the problem is related to the “latest Doge wallet.” “We are in communications with the devs,” he added.
Zhao also fired back at Musk by referring to The Guardian reporting that Tesla software experienced a glitch in October, prompting safety recalls for roughly 12,000 vehicles in the United States. Tesla eventually had to cancel the FSD update on vehicles to fix the issue.
“What happened here?” Zhao wrote, apparently mimicking Musk’s comment to the UN’s World Food Programme director David Beasley in their Twitter argument regarding a $6 billion donation to solve world hunger.
Binance Coin Price Analysis: BNB briefly spikes below $500, sharp reversal incoming?
- Binance Coin price analysis is bullish today.
- BNB/USD dropped over 20 since yesterday.
- Support was found at $490.
Binance Coin price analysis is bullish today as we expect swift recovery to follow after further downside was sharply rejected once the $490 mark was reached this morning. Therefore, BNB/USD has set a new swing low and is ready to regain some of the loss over the next 24 hours.
The cryptocurrency market has seen a strong decline over the last 24 hours. The market leader, Bitcoin, is down by 18.29 percent, while the top altcoins, Ethereum (ETH) and Binance Coin (BNB), dropped around 16 and 15 percent, respectively.
Binance Coin price movement in the last 24 hours: Binance Coin drops 21 percent after being resisted by $630 yesterday
BNB/USD traded in a range of $518.48 – $628.32, indicating strong volatility over the last 24 hours. Trading volume has increased by 112.5 percent, totaling $4.26 billion, while the total market cap trades around $87.8 billion, ranking the coin in 3rd place.
BNB/USD 4-hour chart: BNB rejects downside at $490
On the 4-hour chart, the Binance Coin price action can be seen to reject further downside over the last hours, likely as a new swing low is set.
Binance Coin price action has seen bullish momentum over the past weeks after a new major swing low was set at $510 on the 18th of November. After a quick reaction higher, BNB/USD retested the previous all-time high around $660 on the 26th of November.
From there, further higher lows were set while BNB/USD prepared to finally break above the all-time high. However, after a slow move higher at the end of November, a new lower high was set at $650.
The Binance Coin price started to consolidate as another higher low was formed on Thursday until a quick spike lower took the market to $570 Yesterday. After some initial rejection, further drop followed overnight, leading to the current low at $490 set in the morning.
Binance Coin Price Analysis: Conclusion
Binance Coin price analysis is bullish today as we expect the current rejection for downside to lead to a strong recovery latest today. Likely BNB/USD will move to test previous support around $570 as resistance next.
While waiting for Binance Coin to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.
Binance Smart Chain Activates Real Time BNB Burning Mechanism
BSC has launched its automatic burning mechanism, but it contains some differences from Ethereum’s London hard fork.
Binance Smart Chain (BSC) recently activated BEP-95, which integrates a real-time burning mechanism into its tokenomic structure. From now on, a fixed ratio of gas fees collected by BSC validators will be burned in each block.
The Real-Time Burn Begins
BSC announced the new mechanism’s launch over Twitter earlier this week. Its burn ratio – adjustable by governance – reportedly sits at 10% right now.
BEP-95 was introduced on October 22nd, with the goal of speeding up Binance’s burn process and further decentralizing the network. The company also theorized that this will drive up the price of BNB tokens, presumably through increased scarcity.
“While implementing this BEP might decrease the total amount of BNB that validators and delegators receive from staking, the fiat-denominated value of their rewards may increase,” claimed Binance. “This burning mechanism would further reduce BNB supply; thus, increasing demand would drive the BNB value higher.”
Binance has been manually conducting BSC burns since its inception. Its aim was to reduce BNB’s total supply by 50%, from 200m to 100m tokens. One such burn was conducted shortly before BEP-95 was announced, taking $640 million (1,335,888 BNB) off the network.
Binance’s real-time burn will work alongside the exchange’s scheduled burn events. Notably, it will remain in effect even after the scheduled burns have reached their 100m BNB supply target. As BEP-95 reads: “By design, BNB is a deflationary token.”
Binance Burning Versus Ethereum
Binance’s new burning mechanism is similar – but not identical – to Ethereum’s. While both chains collect tokens for the burn pool through transaction fees, some BSC’s fees are still used to compensate validators. On Ethereum, all mandatory fees are sent to the burn pool, with a ‘tip’ option available for transactors to compensate miners. The rest of miners’ compensation is delivered through block rewards.
Furthermore, as Binance uses proof-of-stake, there are no new tokens entering circulation to balance out the burn. Meanwhile, Ethereum’s block rewards and burn pool work against each other when influencing currency supply. This sometimes results in a net-deflationary time period for Ethereum but still produces an inflationary environment overall.
Binance Singapore to Reportedly Withdraw its Permit Application
After being on the regulator’s waitlist of crypto exchanges that are yet to get approval in Singapore to legally provide crypto services, Binance may just quit its former hub, and move on to expanding its business in other territories. According to Business Times insider reports, Binance has hinted at withdrawing its application with the Monetary Authority of Singapore (MAS), in lieu of the long-standing halt of seeking an operation’s permit. Furthermore, the withdrawal will depend upon whether or not the Nation’s regulatory authorities consider a change in stance. Regardless, Binance is expected to declare its final decision by next year.
Binance CEO Shares Risk Reduction & Economic Growth Strategy
While Binance CEO, Changpeng Zhao declined to comment on the status of his the exchange’s local unit’s licence application in Singapore, noting that it is “in the process”, he did highlight that Binance will only set up shop in countries with a pro-crypto approach. Despite the exchange’s recent decision to become regulator-friendly and more centralised, Binance does not believe in completely giving in to irrational regulatory restrictions. CZ argued that while risk reduction is essential for consumer protection, however, pro-crypto regulators have a way of both, reducing risk while enabling innovative and economic growth.
“When (regulators) only go by that metric, they just shut everything down, and yes that’s the best way to reduce risk. But better regulators have 2 metrics – they want to encourage innovation or economic growth and reduce risk. Regulators usually make rules that are much more pro-business when they look at both these metrics.”, The Business Times quoted its impromptu interview with CZ.
Singapore authorities are adopting a pro-crypto approach while also maintaining regulatory oversight. However, the nation is still to pass crypto exchange giants’ applications to allow them to legally provide services in the area.
Last month, CoinGape reported that both, Binance and Coinbase were struggling to acquire their licenses from MAS, while authorities revealed that more than half of the companies that applied for crypto permits in 2020, had already received their approvals. Although MAS noted that some crypto companies were still operating with an exemption, and waiting to get approved by the authorities.