On a day of unexpected spikes in Ethereum network gas prices, a crypto wallet belonging to the popular trading platform Binance reportedly spent an astonishing 530 Ether (approximately $843,797) on gas fees, according to blockchain data explorer Etherscan. This amount was spent within a 24-hour period, raising many eyebrows and provoking reactions from various corners of the cryptocurrency community.
There was a marked increase in gas fees on the Ethereum network; it rose from a minimum of around $0.17, to a staggering maximum of approximately $11.2 per transaction. This rapid surge in prices was reportedly linked to “Binance 14” – a wallet belonging to Binance, which coincidentally spent nearly $1 million on ETH network gas prices during this period.
Many within the community have expressed opinions on the exorbitant gas fees spent by the crypto trading platform. Web3 investor Belinda Zhou, for instance, referred to Binance’s engineers as “incapable”, citing that they had wrongly configured and set the gas allowance way above average.
Venture capital firm partner, Adam Cochran, suggested that such unusually high gas fees might be the result of defective APIs, criticizing the technology used by the exchange platform. He further questioned Binance’s ability to safely manage the vast amounts of coins across various protocols.
In contrast, representatives from Binance quickly came to their defence. They purportedly explained that the high gas fees were an unfortunate result of their wallet aggregation process, which was conducted when gas fees were at their lowest. The company, however, has yet to provide any substantial evidence to back their claims.
Moreover, this incident shines a light on Binance’s frequent entanglement in controversies. The platform is currently garnering attention from critics owing to its ongoing legal battle with U.S Securities and Exchange Commissions. This includes the CEO’s recent denial of a report claiming he borrowed a considerable sum from BAM Management. This latest development regarding the spike in the ETH gas fees only adds fuel to the already raging conversation surrounding the reliability and integrity of this major market player.
Elsewhere in Europe, an executive of Binance disclosed plans to delist stablecoins in compliance with the Markets in Crypto Assets (MiCA) law. The representative noted that owing to the non-availability of an approved project, they are moving toward delisting all stablecoins in Europe by June 2024, which could significantly impact the market in Europe.
In conclusion, as we move deeper into the realms of blockchain and cryptocurrency, the safety, efficacy, and reliability of trading platforms continue to be a topic of scrutiny and concern. The swift actions of Binance in addressing these issues will undoubtedly shape the company’s reputation, potential growth, and overall standing within the ever-evolving crypto industry.
Source: Cointelegraph
