In the course of the switch to IOTA 1.5, customers of the Binance crypto exchange experienced restrictions on deposits and withdrawals from IOTA for months. Now everything should work normally again.
Around half of global trade with IOTA is carried out via the Binance crypto exchange, which makes technical details all the more important. The good news first: Binance announced in a service announcement that its own migration of IOTA tokens to the Chrysalis network has been completed. This means that deposits and withdrawals in IOTA from customer accounts at Binance to external wallets are possible again. Although there was corresponding news in mid-August, many Binance customers still report problems afterwards.
The Chrysalis network went live at IOTA at the end of April and is usually called IOTA 1.5. Associated with the major upgrade was the need to transfer credit in IOTA to the new network. Binance made it clear in April that it would support the move to IOTA 1.5. But customers then had to find that they could no longer withdraw their IOTA from Binance and could not pay any IOTA from other sources to Binance. The background was: Binance stores IOTA on Ledger hardware wallets and the software promised by the IOTA Foundation for an interaction of IOTA 1.5 with Ledger Nano S and Ledger Nano X only appeared at the beginning of August.
The question remains why it took so long at Binance to provide IOTA with the usual support. Because customers rightly note: For more than three months they had no real access to their IOTA at Binance, but could only trade with them. Binance customers were not able to store IOTA on Ledger hardware wallets or the official IOTA wallet Firefly. The general rule among investors is to only leave crypto credit on accounts at crypto exchanges for trading purposes. Medium- and long-term investments are safer on a hardware wallet or external wallet, where private keys remain with the owner.
Conclusion: Binance and IOTA – more rational relationship than real love
Although the trust of the IOTA community in Binance has suffered due to the long waiting time, only a few are likely to turn away completely. Due to the high trading volume at Binance, fair prices are guaranteed for IOTA and large trades can also be implemented. With the competition, these pluses are not always so certain. With the large provider Coinbase, IOTA is not even listed and with FTX there are only derivatives based on IOTA. For the majority of IOTA investors, Binance therefore remains the first trading platform, even if the service has not recently been able to meet all expectations.
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