The sell-offs appear to be prompted by the pushback Bitcoin (BTC) is experiencing at the $12,000 price mark.
The duo of major cryptocurrency exchanges Coinbase and Binance suffered temporary technical issues as the crypto market went into a frenzy ushering in bouts of sell-offs that placed the exchanges under pressure.
The sell-offs appear to be prompted by the pushback Bitcoin (BTC) is experiencing at the $12,000 price mark. The first-ever digital currency has thus been spiraling down and currently trading at $11 451.56 according to Coinpaprika. The coin has lost about 3.92% in the past 24 hours. Based on Bitcoin’s influence, other digital currencies have also seen drops in their price values. Ethereum (ETH) has also lost 5.3% to cap its price at press time at $445.08.
Per Decrypt’s report, other top ten cryptocurrencies like XRP, Chainlink (LINK), and Polkadot (DOT) are also suffering big losses-and are down between 6 to 11% in the last day. The dramatic sell-off also affected Tether (USDT), which is currently selling at below its dollar peg at $0.982. Other stablecoins like USD Coin (USDC), True USD (TUSD), and Dai (DAI) remain largely unaffected.
How Sell-Offs Affected Coinbase and Binance
Per the reports from Coinbase, the exchanges’ customers were unable to transfer BTC, ETH, XRP, and 23 other affected cryptocurrencies to other users. The glitch has long been resolved by the Coinbase team as shown on the incident’s status update.
Binance also tweeted that several customers were experiencing issues accessing the binance.com platform.
We are aware of some temporary difficulties accessing https://t.co/QILSkzOI1K.
Rest assured our team is working on it.
Thank you for your patience and apologies for any inconvenience caused.
— Binance (@binance) September 2, 2020
While the entire glitch is largely attributed to the crashing crypto market, there have been assertions that the raid of South Korea exchange Bithumb by the police over an alleged fraudulent token sale might have contributed to the frenzy.
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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
