Multi-asset brokerage eToro has issued a warning to customers seeking to purchase bitcoin and different cryptocurrencies over the approaching weekend.
In keeping with an e-mail despatched to prospects and as reported by Bloomberg on Wednesday, the Israel-based firm stated prospects might face “potential limitations” on account of “challenges” within the platform’s means to assist purchase orders.
The corporate stated they might impose limitations on prospects seeking to buy cryptocurrency belongings on account of issues arising from a scarcity of market liquidity.
The brokerage could set a brief most publicity quantity per cryptocurrency asset per consumer, in addition to quickly suspending the power to position new purchase orders, in line with a copy of the letter posted on-line.
Spreads on cryptocurrency belongings may be wider than traditional ensuing from “unprecedented situations out there” as demand surges from newcomers for digital belongings.
Customers on the platform have skyrocketed in latest weeks, with eToro opening 380,000 new accounts. Its cryptocurrency buying and selling quantity is 25 instances increased than January 2020, per Bloomberg’s reporting.
The disruption to companies has additionally filtered over to merchants concerning leveraged cryptocurrency positions who referred to as foul on Sunday when their positions had been abruptly closed on account of “excessive market volatility.”
As such, prospects are actually being warned that the brokerage platform could make additional adjustments to their cryptocurrency choices “at very brief discover.”
“Our expertise of the 2017 crypto rally signifies that we perceive the potential penalties of maximum volatility in crypto markets. We wish to make sure that our purchasers absolutely perceive the potential dangers,” an eToro spokesperson instructed CoinDesk by way of e-mail.
UPDATE (Jan. 14, 11:50 UTC): Provides remark from eToro spokesperson.