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Binance Announcement Regarding Bitcoin Ordinals Suspension
Binance made an announcement on April 4, 2024, stating that it will suspend Bitcoin Ordinals trades and deposits starting from April 18, 2024. The exchange recommended holders of Bitcoin-based non-fungible tokens (NFTs) to withdraw their assets from the NFT marketplace before May 18, 2024.
Reason Behind the Suspension
Although Binance did not provide a specific reason for the suspension of Bitcoin Ordinals, it mentioned that the decision was part of an effort to streamline its product offerings on the marketplace.
Changes in Binance NFT Marketplace
Following the suspension, Binance NFT marketplace will cease offering airdrops, utilities, and benefits related to Bitcoin NFTs after April 10, 2024.
Impact of Bitcoin Ordinals Suspension
Despite Binance’s decision, OKX plans to support four new inscription standards, believing that Bitcoin Ordinals will continue to be significant in 2024.
Bitcoin Ordinals Overview
Bitcoin Ordinals, also known as Bitcoin NFTs, enable users to embed various digital content onto the Bitcoin blockchain, including music, audio, text, video, images, and art. Binance introduced support for these collectibles in 2023, but the inclusion is now being reversed within a year, surprising many in the community.
Market Trends and Data
Data from non-fungible.com indicates a decline in trading activities within the NFT market, including Bitcoin-based NFTs. Similarly, Statista data shows a significant drop in NFT sales across various blockchains, such as Ethereum.
Challenges Faced by the Bitcoin Network
The rise of Bitcoin Ordinals has raised concerns about network security and congestion. Luke Dashjr, a prominent Bitcoin Core developer, highlighted issues such as network clogs, increased fees, and vulnerabilities caused by Bitcoin NFTs.
Bitcoin Network Statistics
According to Dune Analytics data, the Bitcoin network has experienced over 64.17 million inscriptions, resulting in significant transaction fees. This has led to network congestion and slower transaction processing for users.
Debate Over Bitcoin Ordinals
The emergence of Bitcoin Ordinals has sparked a debate on whether inscriptions representing NFTs and BRC-20 tokens on the Bitcoin network should be allowed. While some view it as a positive step towards decentralization and innovation, others raise concerns about potential network issues similar to those seen on the Ethereum chain.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
