e-Toro – one of the world’s largest cryptocurrency trading platforms – has put out a notice to its customers warning them that the company may be instilling various limits on purchase orders in the coming weeks.
e-Toro: We May Have to Implement Buying Limits
The announcement came in response to what the company calls an unprecedented demand for bitcoin and cryptocurrencies. With the recent spikes experienced by bitcoin (the asset is currently up to $36,000, about 300 percent higher than where it stood early last year) and many of its digital cousins, the demand for these assets is growing to the highest levels experienced in e-Toro’s 13-year history.
This is putting heavy strain and pressure on the trading enterprise, which has hinted that it cannot keep up with present orders. In addition, many of these coins are becoming rarer, as customers and clients are buying up new units faster than they can be mined. As a result, e-Toro has explained that it may have to limit the amount of assets customers can purchase in a single transaction.
The memorandum issued by the company explains the following:
The unprecedented demand for crypto, coupled with limited liquidity, presents challenges to our ability to support BUY orders over the weekend. Because of this, it may be necessary for us to place limitations on crypto BUY orders over the weekend.
The price of bitcoin has been exploding for the past nine months. The world’s number one digital currency by market cap has been enjoying a bull run like no other thanks, in part, to the ongoing coronavirus pandemic which has caused many people to view a once speculative asset in a whole new light. Nowadays, many see it as a hedge tool; something that can potentially keep their wealth safe and secure during times of financial strife.
This has led to massive bull rallies and enthusiasm from new traders. Bitcoin’s reputation has grown more in the last year than it has in the previous decade, and for the most part, analysts believe that the present sentiment towards bitcoin is a unique and positive thing. However, the trends have come with various downsides.
Due to the increased volatility and the constant price swings, many exchanges such as San Francisco’s Coinbase have experienced temporary power outages, thereby barring customers from accessing their funds during certain periods. This has caused strain and anxiety amongst traders, who are concerned about the technological strength of the exchange and its alleged ability to provide appropriate support.
Hopefully, These Measures Can Be Avoided
An e-Toro spokesperson further mentioned:
It is our effort to give clients advance notice that there may be restrictions. We obviously hope we will not have to implement any of these, but the crypto markets are incredibly volatile at this time, and the weekends present the greatest challenges.
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