Nansen data shows Kraken requests to withdraw over 556,000 ETHs worth $1 billion after Shanghai upgraded its ETH withdrawal function

04/14/2023 22:56 • Blockchain Briefs • 100 views

According to reports, Nansen data shows that after Shanghai upgraded its ETH withdrawal function, Kraken, a cryptocurrency exchange, has requested to withdraw over 556000 ETHs (worth $1 billion), accounting for 63.5% of the 860000 ETHs currently queued for withdrawal. Kraken previously announced that due to regulatory reasons, it will automatically begin to release all Ethereum pledges for its US customers. Previously, the Securities and Exchange Commission (SEC) accused Kraken of failing to register its pledge plan in the United States, and Kraken agreed to pay a fine of $30 million.

Kraken will release ETH pledges worth over $1 billion

Introduction

Recently, it was reported that after Shanghai upgraded its ETH withdrawal function, Kraken, a popular cryptocurrency exchange, requested to withdraw over 556,000 ETHs worth $1 billion. This accounts for 63.5% of the 860,000 ETHs currently queued for withdrawal. This move by Kraken comes after the exchange announced that it will automatically release all Ethereum pledges for its US customers due to regulatory reasons. In this article, we will delve deeper into this development and its potential impact on the cryptocurrency market.

Understanding the Situation

Kraken, like many other cryptocurrency exchanges, is currently facing regulatory challenges. The Securities and Exchange Commission (SEC) accused Kraken of failing to register its pledge plan in the United States, resulting in the exchange agreeing to pay a hefty fine of $30 million.
The recent upgrade by Shanghai to its ETH withdrawal function has also played a role in Kraken’s decision to withdraw its ETHs. The upgrade has made the withdrawal process quicker and more efficient, prompting many users to withdraw their funds from the exchange. As a result, many traders are rushing to secure their assets, leading to a surge in withdrawal requests.

Impact on the Market

The withdrawal of over 556,000 ETHs worth $1 billion by Kraken is likely to have a significant impact on the cryptocurrency market. This move has already led to a drop in the price of Ethereum, and the market is expected to remain volatile in the coming days as traders react to this development.
However, this situation may also present an opportunity for traders to buy Ethereum at a discounted price, as the drop in price may not be sustained in the long run. The market has experienced a similar situation in the past, with the price of Ethereum often bouncing back after a dip.

Conclusion

The Kraken withdrawal of over 556,000 ETHs and the regulatory challenges faced by cryptocurrency exchanges highlight the need for more open, transparent, and regulated trading platforms. As the market continues to evolve, traders and investors must remain vigilant and informed to make the best investment decisions.

FAQs

**Q1. What is Kraken and how does it work?**
Kraken is a cryptocurrency exchange that allows users to buy, sell, and store digital assets. It offers a range of trading pairs, high liquidity, and advanced features for experienced traders.
**Q2. Why did Kraken withdraw its Ethereum pledges?**
Kraken withdrew its Ethereum pledges for its US customers due to regulatory reasons. The Securities and Exchange Commission (SEC) accused Kraken of failing to register its pledge plan in the United States, resulting in the exchange agreeing to pay a fine of $30 million.
**Q3. What is the impact of the Kraken withdrawal on the cryptocurrency market?**
The withdrawal of over 556,000 ETHs by Kraken is likely to have a significant impact on the cryptocurrency market. The price of Ethereum has already dropped, and the market is expected to remain volatile in the coming days. However, this situation may also provide an opportunity for traders to buy Ethereum at a discounted price.
#

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/04/14/nansen-data-shows-kraken-requests-to-withdraw-over-556000-eths-worth-1-billion-after-shanghai-upgraded-its-eth-withdrawal-function/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.