Not enough cryptocurrencies for everyone, as eToro warns of ‘possible limitations’
Following a growing demand for cryptocurrencies from its users, eToro has issued a warning of possible limitations next weekend. The Israel-based exchange platform told customers in an email that it is struggling to meet the growing demand. And as such, clients could face “potential limitations on crypto BUY orders” due to lack of market liquidity. The unprecedented demand for cryptocurrencies, coupled with limited liquidity, presents challenges to our ability to support BUY orders over the weekend. @ MatiGreenspan I know you have a mega position in $ BTC on eToro, I felt in your thoughts. pic.twitter.com/Xt12bAJGxJ – CRYPTO KOALA (@Cryptokoala_Aus) January 13, 2021 If limitations go into effect, clients may be limited to a maximum amount of exposure per cryptocurrency. New purchase orders can also be temporarily suspended and customers may have to wait in line to buy. Also, spreads on crypto assets can be wider than usual. eToro has witnessed an increase in its user base in recent weeks. As reported by Bloomberg, in just 11 days, 380,000 new accounts were opened on the platform with a trading volume 25 times higher than in January 2020. In an attempt to curb new user registrations, the exchange increased its minimum deposit as well. increased by 400% to $ 1,000. It also restricted its European clients from margin trading last week. Crypto liquidity problems are becoming more obvious due to the heightened interests of retail and institutional investors.