DOGE Pumps on Elon Musk’s Enquiry to Binance, CZ Strikes Back

DOGE briefly pumped 6.9% to $0.232 as bots got activated with Elon Musk tweeting about Dogecoin.

Since then, DOGE has pared half of its gains and, as of writing, is trading at $0.224, down more than 69% from its all-time high in early May.

Tesla CEO enquired leading cryptocurrency exchange Binance chief executive officer Changpeng Zhao about the issues users are facing with Dogecoin.

“Hey CZ, what’s going on with your Doge customers? Sounds shady,” wrote Musk on Twitter on Tuesday.

Recently, some Binance users received some DOGE as the transactions that were stuck due to insufficient fees from a year ago were suddenly relayed successfully post an update.

“What we believe has happened is the previously stuck transactions have been retried automatically, as would happen on each node restart after upgrade – and went through since now the minfee is lower,” explained Dogecoin developers on Twitter.

Reshuffling

Elon’s tweet ended up pumping DOGE, which went back to reclaiming the 10th spot from Ethereum (ETH) competitor Avalanche, whose token AVAX has been pumping in response to its partnership with “big four” professional services firm Deloitte for the improvement of US disaster relief funding.

The strategic alliance Deloitte was announced last week to improve state and local governments’ recovery from natural disasters and public health emergencies.

Moving in the opposite direction of the broad crypto market, which has been going down for the past couple of weeks, AVAX hit its all-time high of $145 over the weekend to acquire a $29 billion market cap and push above Dogecoin and Shiba Inu (SHIB).

SHIB -3.15% SHIBA INU / USD SHIBUSD $ 0.00
$0.00-3.15%
Volume 1.89 b Change $0.00 Open $0.00 Circulating 10 t Market Cap 23.01 b
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AVAX -8.15% Avalanche / USD AVAXUSD $ 123.88
-$10.10-8.15%
Volume 1.96 b Change -$10.10 Open $123.88 Circulating 223.85 m Market Cap 27.73 b
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ETH 6.35% Ethereum / USD ETHUSD $ 4,342.16
$275.736.35%
Volume 22.04 b Change $275.73 Open $4,342.16 Circulating 118.46 m Market Cap 514.38 b
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But today, AVAX’s price movements have aligned with the market, and the coin is now trading just under $130, down 11.5% from its high. The coin is up 3,385% YTD.

Back in September, the Avalanche Foundation raised $230 million from a private sale of the tokens to Polychain and Three Arrows Capital, which also supported its $200 million-plus Blizzard fund announced to foster development on Avalanche.

“It’s another example of faster, cheaper Ethereum competitors doing well,” said Jonathan Cheesman, head of institutional and OTC sales at crypto derivatives exchange FTX. “There’s a huge wealth effect and a lot opportunistic and mobile capital.”

Counter-Strike

Meanwhile, Elon’s inquiry led Binance to share what exactly is going on with Dogecoin withdrawals at the exchange.

“The root cause is a technical issue during the recent upgrade process that caused old transactions to be resent to 1,674 users,” said the exchange noting they have to rebuild the wallet entirely, which is causing the delay and may still take another week or so.

The issue is limited to Binance, and no other platform is affected, which the exchange said is because they “have a different technical wallet set-up for DOGE.”

The Binance team also said that they are aware that its users have received old transactions and cannot withdraw their DOGE tokens and asked them to “return” these coins.

Elon responded to this explanation with, “Doge holders using Binance should be protected from errors that are not their fault.”

But this didn’t end here. CZ struck back at Elon by asking him about the incident involving 12,000 Tesla vehicles being subject to a safety recall due to a communication error causing unexpected activation of the emergency brake, reported earlier this month by the National Highway Traffic Safety Administration (NHTSA).

Besides the clap back, CZ also clarified that it’s an issue with the latest DOGE wallet, adding, “apologies for any inconvenience that may have caused you.”

Sovereign Wealth Funds For Investment

Cryptocurrency exchange Binance is in talks with sovereign wealth funds for investment in the leading platform in order to better its relationship with regulators and governments, CEO Changpeng Zhao told the Finance Times.

The exchange believes selling sovereign wealth funds’ stake in Binance would help improve its “perception and relationships” with various governments, CZ said in the interview. “But it may also tie us to specific countries . . . which we want to be slightly careful with,” he added.

And while regulators are worried about illegal activity, Zhao said the company was “probably better than banks” for having checks in place, such as KYC and AML technology.

Binance’s US entity, meanwhile, is preparing to raise capital through a public listing. Singaporean business of Binance, on the other hand, is backed by Vertex Ventures, the venture capital arm of state-backed investment company Temasek.

As for Binance’s investment, he didn’t share which funds they are in discussions with and added that “The ticket size involved will not be small . . . it won’t be a short process.”

Binance is the largest spot crypto exchange by big margins in the world, which recorded $32.7 billion in trading volume in the last 24 hours, according to CoinGecko. In the Bitcoin futures market as well, it is leading with $35.68 bln and $5.67 bln in OI, the same as Ether at $16.13 bln and $2.40 bln, respectively, as per Skew.

At the Bloomberg New Economy Forum, CZ had said that the platform was recording daily transaction volumes of $170 bn, compared with $10bn-$30bn two years ago.

The exchange recorded 174.2 million visits in October, down from 251.34 million in May.

Getting Settled

Binance is also hunting for a new global headquarters in cities including Singapore and Dubai. Binance, CZ said, has increasingly gravitated towards governments where the company can communicate “more directly” with regulators, like Singapore.

Most countries do not have clear guidelines for products like NFTs and gamified tokens, so Binance was waiting for more clarity before “committing to a single jurisdiction,” he said.

According to the Irish Independent’s latest report, Binance is stepping up its plan for a headquarter in Ireland.

The company has already broadened its corporate presence in Ireland by setting up three new firms, Binance (APAC) Holdings, Binance (Services) Holdings, and Binance Technologies, and is now registering another one called Binance Exchange (Ie). Last month, CZ had said that they are indeed eyeing Ireland for its HQ.

“Historically, we claim that we don’t have headquarters,” he told Reuters at the time. “We are actually just in the process of establishing a few headquarters in different parts of the world.”