At the weekend, IOTA finally provided support for Ledger hardware wallets. But Binance customers can still not withdraw their IOTA. Trouble is spreading.
When it comes to IOTA, this altcoin is nowhere more traded than on the Binance crypto exchange. The mood among Binance customers became all the more irritated when, after the switch to IOTA 1.5 at the end of April, they had to notice that they could no longer have their balances paid out from their accounts to a Ledger hardware wallet as before. The reason for this was the lack of support for migrating from IOTA via a Ledger Nano S or Ledger Nano X. Now the IOTA Foundation succeeded in connecting the Ledger Nano hardware wallets to the new Tanglenet at the end of last week with a good three months delay. But this breakthrough has not yet reached Binance customers and disappointed voices are piling up on Reddit.
Technically speaking, Binance had the same problems as private investors: customer funds in IOTA are stored there in Ledger Hardware Wallets and are stuck in the old Tanglenet. It was now to be assumed that Binance would initiate the migration process of this IOTA and thus be able to pay out IOTA again. But according to the screenshot, Binance customer service only gives the answer: “Unfortunately there is no schedule for this topic yet, please wait patiently. Thanks for your understanding. ”Even drilling apparently did not lead to further information about Binance’s plans with IOTA. According to the speakers, customers of Binance residing in the USA are particularly hard hit. Because they are requested by the deadline to transfer their crypto balance from Binance.com to Binance.us. But in the case of IOTA, this procedure fails.
IOTA stuck at Binance – what should be done?
On Reddit, two ways are described how the IOTA situation at Binance can be solved individually:
1. IOTA can be exchanged for so-called wrapped IOTA via the Binance Smart Chain. This option was actually intended to make IOTA available in the DeFi division. But here it also helps, because Wrapped IOTA can be paid out at Binance. A return to “real” IOTA will be possible again when Binance resumes full support for IOTA.
2. Sell IOTA at Binance and have the income paid out in Fiat or buy another crypto currency from Binance that can be paid out. Use this money to buy IOTA from another crypto exchange that has already implemented the IOTA 1.5 payout. This means that credits can also be transferred to a Ledger Nano S or Ledger Nano X via the IOTA Wallet Firfely, but not directly from Binance.
Conclusion: Binance leaves IOTA customers hanging
With all justified criticism of the IOTA Foundation – in this case the scapegoat is to be found at Binance. The world’s largest crypto exchange is constantly proving that it can react very quickly to customer requests. But here at IOTA, Binance is communicating with little transparency and leaving angry investors behind. Because if you handle your IOTA as described, additional fees arise. The plan to securely store credit in IOTA and other cryptocurrencies on a Ledger Nano makes perfect sense and is legitimate. Why Binance is finding it so difficult to internally implement the step to IOTA 1.5 is in the dark after the compatibility of Ledger Hardware Wallets with IOTA and even seduces some into conspiracy theories.
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