Amid the DOGE Madness, Binance Almost Runs Out of Dogecoin Deposit Addresses

Binance CEO Changpeng Zhao chalked up recent loading issues to some combinations of Elon Musk, Dogecoin, and the chaos surrounding GameStop and r/wallstreetbets.

The world’s largest cryptocurrency exchange was forced to temporarily suspend withdrawals, in response to what Zhao described as “system loading problem“.

Now, Zhao tells us that Binance has seen “exponential growth in user traffic, trading volume and deposit & withdrawal volume, and load on the system.”

Zhao suggested that Elon Musk changing his Twitter bio to “#Bitcoin” this morning may have contributed to the increase in traffic. Musk’s endorsement of the coin is widely attributed as the reason that Bitcoin’s price surged by 15%, pushing short traders to $450 million. A wild morning in crypto follows a period of uncertainty in traditional markets; earlier this week, a subreddit called r/wallstreetbets sent the prices of stocks like GameStop and AMC to new highs, creating a brief squeeze that cost hedge funds billions of dollars.

And as stock trading app Robinhood faces renewed scrutiny, influencers like Anthony Pompliano and the Winklevoss twins have been trying to herd anxious investors towards crypto exchanges.

“It is impossible, for us or anyone else, to establish a specific cause for some outcomes in the free market,” Zhao said. “We can’t say with certainty that Elon’s Twitter bio changes caused a sudden price move in Bitcoin, which caused a massive traffic spike to Binance, which then weighed on parts of our system, and caused several withdrawal delays. “

The Binance CEO added: “Could be a change to Elon’s Twitter bio; It could be WallStreetBets; It could be a few whales in Asia or Uganda, or 1,000 other potential reasons. There is no way to be 100% sure. Everything is possible, but who knows. “

One other possible cause, according to Zhao, is Dogecoin, a cryptocurrency that has made significant gains over the past 24 hours. Dogecoin started out as a joke — a so-called “meme coin” designed to poke fun at Bitcoin clones — but its recent rise in price has been real: it jumped from around $0.01 to over $0.04 overnight.

“We actually almost ran out of Dogecoin deposit addresses because the new address generator couldn’t generate new addresses for user deposits fast enough to match user deposits,” Zhao said. “On the withdrawal side, our normal number of nodes cannot process the number of withdrawals that occur, we have to increase the number of nodes significantly in a short period of time. Whenever there is exponential growth, there is a high probability of a bottleneck. “

For now, Binance is back up and running.

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