Due to volatility in the market, EToro announced a sale restriction that would increase the minimum deposits to USD 1,000.
The eToro platform announced to its users that it will restrict bitcoin (BTC) purchase orders on weekends. The decision gained strength because the platform problems have to support requests for orders due to limited liquidity.
The company wrote and sent an email to users explaining that there is currently a high peak in demand for cryptocurrencies. Therefore, eToro is unclear about the longitude and magnitude of this limitation.
“The unprecedented demand, coupled with limited liquidity, presents challenges to our ability to support BTC purchase requests over the weekend. As a result, we may have to impose restrictions on requests for the purchase of cryptocurrencies”, as quoted by the agency Bloomberg, also referring to the communication sent by the company to its clients.
The text of the firm says that “it hopes not to be forced to establish more restrictions, but the cryptocurrency market is currently very volatile and weekends are by far the most difficult days”.
eToro is also pursuing to curb the increasing demand from cryptocurrency trading operators on its platform. On its Twitter account @eToroService, the company announced on January 8, 2021, that there was a probability of increasing the minimum deposits.
eToro suffered a massive reception of new customers during the current upward cycle of the cryptocurrency market, with a total capitalization that surpassed the sum of $ 1 trillion.
This is a consequence of the rise in the price of bitcoin that recently got close to USD 36,825 with a market capitalization of USD 685 billion. Also, in this same month, the cryptocurrency reached USD 36,178, with a market capitalization of $ 673 billion.
The company also argues that it is moving all its pieces to manage this demand more functionally as well as working on improvements to bring a more qualified user experience.
“The high level of demand and limited liquidity presents challenges to our ability to support purchase orders over the weekend”.
eToro and its Relationship with Other Cryptocurrencies
eToro does not only work with bitcoins, other cryptocurrencies users can also find that some other cryptocurrencies like Dash (DASH), Litecoin (LTC), XRP and Ethereum Classic (ETC), and ether (ETH) can also be traded through the platform.
eToro funded The Crypto CopyFund intending to integrate all cryptocurrencies that circle its platform with a market capitalization greater than $ 1 billion as well as an investment that hits the volume of more than $ 20 billion daily, one of the aims they are pointing at is the distribution of the weights of the demand in a more balanced way.
The eToro joined the group of companies that suspended every business and transaction-related to XRP in the United States since January 13, 2021, due to the lawsuit that the United States Securities and Exchange Commission (SEC) filed against the technology company Ripple Labs INC.
By: Jenson Nuñez
