Binance Drops Support for Bitcoin Ordinals
Binance drops Bitcoin Ordinals shocking crypto community
In an unexpected move that has left the cryptocurrency community buzzing, Binance, one of the world's leading cryptocurrency exchanges, announced it is discontinuing support for Bitcoin nonfungible tokens (NFTs), also known as Bitcoin Ordinals. This decision comes just months after the platform eagerly embraced these digital collectibles, marking a significant pivot in its offerings.
On April 4, Binance shared a blog post outlining its new direction to streamline services, which includes halting trades and deposits of Bitcoin NFTs from April 18. Users have been urged to withdraw their Bitcoin NFTs before May 18, 2024, to avoid potential disruptions.
This announcement also signals the end of special promotions, airdrops, and additional benefits for Bitcoin NFT holders on the Binance platform, with a final cutoff for these perks set for April 10, 2024. Notably, collectors of Runestone NFTs are encouraged to act swiftly to secure their airdrops by this deadline.
Bitcoin Ordinals have revolutionized the NFT space by enabling unique digital artworks and content to be inscribed directly onto the Bitcoin blockchain. Since their inception in late 2022 by creator Casey Rodarmor, Ordinals have surged in popularity, mirroring the functionalities of Ethereum's NFTs but within the Bitcoin ecosystem.
The inclusion of Bitcoin NFTs by Binance in May 2023 was initially seen as a significant expansion of its marketplace, promising enhanced opportunities for digital art collectors. However, the popularity of these NFTs has also led to increased congestion and fees on the Bitcoin network, highlighting scalability challenges.
With over 64 million inscriptions recorded and $423 million in transaction fees generated, according to Dune Analytics, the impact of Bitcoin Ordinals is undeniable. Yet, Binance's abrupt exit from this market segment raises questions about the future of Bitcoin NFTs and digital collectibles, stirring debate and speculation within the crypto community.