The retail investment platform eToro Ltd. is meeting so much demand for Bitcoins and other cryptocurrencies that it has warned customers that they may encounter “possible limitations” in order fulfillment.
“The unprecedented demand for cryptography, coupled with limited liquidity, presents challenges to our ability to support BUY orders over the weekend,” said the British-Israeli company in an email to customers. “In light of this, we may need to place limitations on the purchase of cryptography orders over the weekend.”
The announcement highlights how platforms are struggling to manage the growing volatility in the crypto market, as Bitcoin soared to a high of more than $ 40,000 last week. Since then, the digital currency has dropped to about $ 35,500, but investors’ appetite for digital currencies is not waning. Unlike stocks, they trade 24 hours a day, seven days a week, and the volume increased on weekends when investors have more free time to play in the market.
“It is our effort to notify customers in advance that there may be restrictions,” an eToro spokeswoman said on Wednesday. “Obviously, we hope we don’t have to implement any of this, but the crypto markets are incredibly volatile at the moment and the weekends present the biggest challenges.”
If eToro implements the brake, the limitations can define a maximum temporary exposure by crypto-asset for each customer, and temporarily prevent customers from placing new purchase orders, according to the email. Last week, the company interrupted the skill of investors in Europe to trade cryptocurrencies at the margin in response to the growing risks in the market.
Even eToro, a 13-year-old company with 17 million users that is immersed in the Bitcoin roller coasters, did not expect this level of action in the market. In the last 11 days alone, eToro opened 380,000 new accounts, and its cryptocurrency volume is 25 times higher than the same period in 2020. In December, it launched a promotion in the US that gave $ 500 to customers who opened new cryptographic accounts of at least $ 5,000.
– With the help of Brandon Kochkodin