2 Major Cryptocurrency Exchanges [ Coinbase & BTC-E Disable Ethereum ]

in bitcoin •  7 years ago 

Major Cryptocurrency Exchanges Coinbase & BTC-E Disable Ethereum Due to Network Issues.

On June 20, major cryptocurrency exchanges including BTC-E and Coinbase temporarily disabled Ethereum (Ether) withdrawals. In a statement, the BTC-E development team cited the “unstable operation” of the Ethereum network as the primary purpose of temporary withdrawal suspension for Ethereum traders.

The BTC-E team stated:

Various traders and users of the Coinbase cryptocurrency trading platform including BTW Agency founder and COO Allan Yacaman also revealed that the Coinbase development team temporarily disabled all Ethereum withdrawal amidst an ongoing investigation into the network issues of Ethereum.

A statement from Coinbase read:

Analysts such as real estate transaction and asset management platform Velox.RE founder Ragnar Lifthrasir along with many supporters of Ethereum Classic expressed their optimism towards Ethereum Classic, which recently altered its monetary policy that is more similar to that of bitcoin than Ethereum, due to the network issues and blockchain congestion the Ethereum network is struggling to deal with.

On March 31, Ethereum co-founder and developer Vitalik Buterin revealed that investors allocating Ethers to purchase ICOs tokens from projects such as BAT and Bancor have attached thousands of dollars as transaction fee in order to secure their purchase of ICO tokens ahead of other investors.

Referring to a $2,220 transaction fee or gas an investor of the BAT ICO attached, Buterin explained that average Ethereum fees include such abnormal and absurd transaction fees that are not beneficial to the Ethereum network.

While the emergence of multi-million dollar ICOs and mega-successful ICOs such as Bancor that have raised $150 million dollars played a driving factor in testing the flexibility and scalability of Ethereum, Buterin also explained that the vast majority of decentralized applications (Dapps) launched on top of the Ethereum protocol have been coded or written inefficiently.

Ethereum is beginning to experience scaling issues due to the explosive growth of the ICO market. Like bitcoin, the Ethereum development team is working on various solutions to optimize the Ethereum network.

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