Binance Halts Filecoin (FIL) Withdrawals Over the Weekend


Over the weekend, leading spot crypto exchange Binance stopped the withdrawal of the Filecoin (FIL) without any announcement.

Even after 24 hours, it continued to show, “The current currency is not open for withdrawal.”

The exchange finally told its customers that it was due to the sudden failure of the wallet. The weekend was to blame, and Binance has to do internal technical repairs to restore the FIL network mainnet.

“The industry suspects that a large amount of FIL has been lent from Binance before,” tweeted Colin Wu of Chinese publication Wu Blockchain

“Binance Filecoin inventory has been drained it seems like, withdrawal of FIL has been paused for over 24hr now Lots Chinese FIL miners rekt badly and the rough total investment into FIL mining is way over its circulating market cap,” also noted Dovey Wan, the founding partner of Primitive Crypto.

“As total Filecoin investments number floating is over 10b RMB (adding up sales number from all rigs manufactures and sales channel) ~1.5B in USD,” she added.

FIL is the 21st largest cryptocurrency with a $1.34 billion market cap while trading around $30.

The price of the token started uptrending in June this year, when it was trading under $7 only to climb above $56, on the anticipation of its mainnet going live in mid-October.

It was during this time, Coinbase Custody announced support for the cryptocurrency. Last week, Filecoin was also tradeable at Coinbase.com and on the San Francisco-based cryptocurrency exchange’s Android and iOS apps.

Last week, Coinbase also allowed people to earn up to $6 in FIL tokens through its Earn program.

Filecoin is a decentralized peer-to-peer file storage network that was initially released more than six years back. The project aims to let anyone store, retrieve, and host information, and for this service, FIL tokens are used as payment.

In other news, YUANLIQU, one of China's largest Filecoin companies, has been reportedly frequently attacked by investors to defend its rights in its Shanghai office because “too many Filecoin mining machines are sold, but the profit design is confusing. The police have stepped in.”

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