The Israeli site eToro sent out a warning to its users about the possible introduction of a limit on the size of cryptocurrency transactions due to a lack of liquidity on the platform.
The company has become hostage to its own success – since the beginning of January, 380,000 new users have registered on the platform, and trading volumes have increased 25 times compared to the same period in 2020. As of January 9, eToro had 17 million registered users.
“The unprecedented demand for cryptocurrencies, combined with limited liquidity, creates problems on our platform in accepting orders to buy cryptocurrencies on weekends. It is possible to impose a limit on the volume of orders, as well as a significant increase in the spread, ”- said in a notice eToro.
Former eToro analyst Mati Greenspan noted that this is a sign of “liquidity problems”, but he does not advise users to withdraw funds from the site. He predicted similar problems would soon appear on other cryptocurrency platforms.
As a reminder, eToro previously disabled the leveraged trading feature for European users. This move was attributed to “excessive market volatility.”
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