Binance Temporarily Halts Transactions on Solana and Ape; Here Are Reasons

According to cryptojournalist Colin Wu, Binance, the largest crypto platform over the likes of Coinbase and Tycoon, has temporarily stopped Solana withdrawals and the Ape lending tool. Binance reports on its website that withdrawals on the Solana (SOL) network have been temporarily halted a few times since April 25.

It explains why this is so: "This is due to the enormous volume of withdrawals generated with blank transaction IDs. When it is determined that the on-chain transactions failed, the accompanying withdrawal requests will be denied. It takes at least four hours to complete the entire operation."

Binance says it is actively working with the project team to deliver a solid, long-term solution to reduce transaction failure and improve user experience, and that it will give updates as needed.

The major crypto exchange also discontinued the APE lending feature, citing reasons such as high demand and a lack of APE available for lending. During a tumultuous 24 hours, futures tracking ApeCoin's APE tokens lost roughly $40 million in liquidations, according to Coinglass statistics.

Liquidations occur in the cryptocurrency market when a trader does not have enough cash to satisfy a margin call, which occurs when an exchange asks additional collateral to keep the trading position financed. Prices for APEs reached a high of $27.62 on Thursday, up from a low of $19.11 the day before.

However, profit-taking caused the APE token to fall as low as $20.51 on the FTX platform on Friday. Bitcoin (BTC) and Ether (ETH) both fell about 3% in the last 24 hours as several crypto assets suffered losses.

APE's remarkable ascension to all-time highs came ahead of virtual land auctions in the popular Bored Ape Yacht Club (BAYC) ecosystem. The developers confirmed in a tweet on Friday that the virtual land will be auctioned off for a flat price of 305 APE, which may have increased APE demand among traders. The land was meant to be auctioned off in the Netherlands. Since mid-April, when it was approximately $11, APE has more than doubled in price, with increasing volatility driving up trading volume on the token’s futures.

GMT and APE, as reported by U.Today, are two of the most volatile assets on the cryptocurrency market, with tokens gaining from 100% to 444% in less than a month, making them the most profitable assets among the top 100 assets by capitalization.