Elon Musk slammed cryptocurrency exchange Binance on Twitter on Tuesday, after the Tesla CEO expressed compassion about the fate of fellow Dogecoin holders caught up in a technical issue.
Binance announced in a statement the next day that an upgrade to the Dogecoin network on Nov. 10 seems to have produced a problem with network withdrawals. They said a “very tiny number of users” were impacted, noting that some previously rejected Dogecoin withdrawal transactions were reprocessed following the update, and “we respectfully beg those users to return the assets.”
Musk stated in a tweet on Tuesday that the problem “sounds shady,” prompting Binance, the world’s largest cryptocurrency exchange, to answer, “no, not sneaky – just frustrating.” In response, Musk stated that “Doge holders who use Binance should be protected from faults that are not their responsibility.”
Binance stated that it is cooperating with the DOGE network, but that it is taking longer than usual because the exchange needs to rebuild the digital wallets that contain the currencies. Blockchain platforms are prone to technical issues.
While the official Binance account stayed with formal answers, the company’s CEO Changpeng “CZ” Zhao responded with a link to a report about Tesla recalling over 12,000 cars due to a software glitch.
The back-and-forth reflects the sometimes chaotic character of cryptocurrencies, particularly when it comes to market infrastructure that has had to develop quickly to meet demand. According to CoinGecko prices, Dogecoin, a memecoin created as a joke in 2013, has increased more than 6,000 percent in the last year, fueled by frenetic trade and increasing cryptocurrency acceptance. Tuesday’s price was scarcely changed.
Users are “rightly” outraged, according to Binance. However, it is unclear how many of those users returned the coins, or whether they had any motivation to do so.