Elon Musk, the world's richest man—worth over $300 billion and arguably the most influential figure in the crypto sector—took to Twitter on Tuesday to rip into Binance, following concerns raised by the Tesla CEO about a technical issue affecting Dogecoin holders.
Binance said in a statement the following day that an upgrade of the Dogecoin network on Nov. 10 caused an issue with withdrawals.
According to the company, "a very small number of users" were affected by the update, explaining that some previously unsuccessful Dogecoin withdrawals were sent again, and they "kindly request users to return those items."
In response to Musk's tweet Tuesday, Binance, the world's largest crypto exchange, replied that the error isn't shady, rather it's just frustrating. Musk replied that Doge holders using Binance should be protected from errors.
It's taking longer than usual for Binance to rebuild its DOGE digital wallet as it has to work with the network. Blockchain platforms are prone to technical glitches.
Binance's Twitter handle stuck to official explanations, but company CEO Changpeng Zhao retaliated by linking to a story about Tesla recalling nearly 12,000 vehicles due to a software glitch.
Our team is aware that 1) users who received old transactions and 2) users who cannot withdraw DOGE are upset - and rightfully so.
The glitch indicates how chaotic cryptocurrencies can sometimes be, especially when it comes to the scalability of market infrastructure to meet demand.
Due to frenzied trading and a wider acceptance of cryptocurrencies, Dogecoin, a joke coin that was created in 2013, has gained more than 6,000% in the past year according to CoinGecko pricing. Prices did not change much on Tuesday.
Users are "rightly upset," Binance acknowledged. The number of users who might have returned the coins, or whether they have any incentive to do so, is unclear.