In the course of the transition to IOTA 1.5, customers of crypto exchange Binance experienced restrictions on IOTA deposits and withdrawals for months. However, everything should now be back to normal.
Around half of the global trade in IOTA is conducted via the crypto exchange Binance and therefore technical details are all the more important here. The good news first: Binance has announced in a service announcement that its own migration of IOTA tokens to the Chrysalis network has been completed. This means that deposits and withdrawals in IOTA from customer accounts at Binance to external wallets are possible again. Although there were corresponding news already in mid-August, many Binance customers still report problems afterwards.
The Chrysalis network went live on IOTA at the end of April and is usually called IOTA 1.5. Coupled with the major upgrade was the need to transfer balances in IOTA to the new network. Binance had made it clear in April to support the move to IOTA 1.5. But customers then found that they could no longer withdraw their IOTA from Binance, nor could they deposit IOTA from other sources to Binance. The background was: Binance stores IOTA on Ledger hardware wallets and the software promised by the IOTA Foundation for an interaction of IOTA 1.5 with Ledger Nano S and Ledger Nano X only appeared at the beginning of August.
The question remains open as to why it took Binance so long to provide IOTA with the usual support even after that. After all, customers rightly note: for more than a quarter, they had no real access to their IOTA at Binance, but could only trade them. Storing IOTA on Ledger hardware wallets or the official IOTA wallet Firefly was not possible for Binance customers. The general rule among investors is to leave crypto assets in accounts at crypto exchanges for trading purposes only. Medium- and long-term investments are safer on a hardware wallet or external wallet, where private keys remain with the owner.
Conclusion: Binance and IOTA – more relationship of convenience than true love
Although the IOTA community’s trust in Binance has suffered due to the long wait, few are likely to turn away completely. Due to the high trading volumes at Binance, fair prices are guaranteed for IOTA and even large trades can be implemented. These plus points are not always so certain with the competition. At the large provider Coinbase, IOTA is even not listed at all and at FTX there are only derivatives based on IOTA. For the majority of IOTA investors, Binance therefore remains the first place to trade, even if the service here has not been able to meet all expectations lately.
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