Israeli crypto exchange platform eToro, announced recently its plans to temporarily limit crypto trading, citing that the exchange cannot meet with the overwhelming and unexpected demand coming from all fronts.
On the first 11 days operating within the year 2021, eToro already managed to amass over 380,000 new users propelling its trading volumes to jump 25 times higher compared to 2020. Furthermore, eToro notes that it already has 17 million concurrent registered users as early as January 9th. While this overwhelming success brings forth excellent financial profits for the company, eToro quickly found itself struggling to keep up with the demands, becoming a victim of its own success.
With all that being said, Mati Greenspan, the founder of Quantum Economics – and former eToro market analyst, warns users that they may soon find themselves severely restricted regarding cryptocurrency exposure within the platform. Greenspan adds that they may temporarily be unable to place new purchase orders as eToro comes up with different solutions.
As per the communications manager of eToro, Katie Evans, apart from the demand issues, the company also is forced to take such measures because it is currently seeing extreme crypto market conditions. She adds that if the crypto demand persistently surges, liquidity issues may once again spring up on various crypto markets.
Evans then recalled their experience four years ago, wherein cryptocurrencies are in a similar astounding rally. According to her, eToro fully comprehends the consequences that may spring up due to the extreme volatility surrounding crypto markets today, and thus, only wants to ensure that all its clients understand this as well.