Unprecedented Demand for Crypto Sees eToro Place Limits on Buy Orders
2 min readAn email is circulating across Twitter referring to a notice from the digital asset platform eToro. The message in question states that the exchange will likely be limiting users’ buying abilities this weekend following unprecedented demand for cryptocurrencies.
Twitter user @Awallan shared an email that he had received from eToro along with the comment, “Mildly Bullish?!”
eToro Too Hot to Handle
The email has not been confirmed directly by eToro but has been received by several users of the exchange that have commented on the Tweet. The email states that eToro is giving users advanced notice of possible limitations to crypto buy orders over the upcoming weekend.
The limitations specified in the email mentioned include the possibility of temporarily suspending the ability to place new crypto buy orders as well as the exchange setting a temporary maximum exposure amount per crypto asset per client.
An Emerging Trend
The unconfirmed announcement comes on the back of another recent move by eToro to curb growing demand for cryptocurrency trading on its platform.
Less than a week ago eToro announced it would be temporarily increasing the minimum deposit amount for new users from $200 up to $1,000.
eToro has seen a dramatic rise in new clients following the recent surge to a $1 trillion market capitalization. This was led in particular by Bitcoin, which also saw a new all-time high in that week.
The email from eToro further explains that the reasoning behind the latest temporary limitations set to take effect due to the overwhelming demand, is also due to limited liquidity.
eToro explain in the email that they are working on the issue, stating “We are doing all we can to manage this demand and to maintain the best possible customer experience”
While eToro will be taking steps to manage the huge demand from its client base, U.S. Senior Marketing Manager Brad Michelson gave a plausible reason for the temporary limitations. Michelson stated that within 2021, the exchange had opened 380,000 new accounts while crypto-trading volume was running 25 times higher than the previous year.
In just the last 11 days, @eToro / @eToroUS has opened 380,000 new accounts, and its crypto-trading volume is running 25 times higher versus last year. https://t.co/aBbLgwHRjC
— Brad Michelson
(@BradMichelson) January 12, 2021
(@BradMichelson) While crypto trading volume hits new highs on platforms such as PayPal and SushiSwap, it comes as no surprise that some issues may arise as the crypto bull market continues.
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