eToro Upped The Minimum Deposit Amount Amid FOMO BTC Demand

eToro upped the minimum deposit amount on the exchange for the new users to $1000 in order to handle the deluge of amateur crypto investors amid the FOMO BTC demand so let’s read more in the latest crypto news today.

On January 7, there were a lot of exchanges that experienced outages while handling high trading demand, including eToro. This is why eToro upped the minimum deposit amount for new users to $1000. The cryptocurrency exchanges that suffered the most include Coinbase, Kraken, Gemini, and Binance who faced technical issues because of the high demand as the BTC market rallied above $40,000.

While the exchanges’ general approach was to try and add more capacity, other platforms were looking to put the brakes on the demand. Etoro is a stock and crypto trading platform based in the UK and Cyprus which increased the minimum amount today to new investors from $200 to $1000. The Global Head of PR & Communications Amy Butler said that this change was much needed in order to deal with “unprecedented demand” and make sure that eToro’s 17 million users are able to continue using the platform without issues:

 “In this first week of 2021 we have seen days with over 40,000 new registered users in a day and volumes of crypto trades at 10 times the average of last year.”

She could say exactly which assets are increasing the demand but of course, Bitcoin played a huge role. The price of the asset hit $30,000 on January 1 it has increased in value by 25%. Exchanges were eventually forced to keep up. Kraken Chief Commercial Officer Bobby Zagotta said that he:

 “has experienced a marked pickup in customer registrations of the past month with the number of accounts created in one day breaking records set during the 2017 bull run.”

This will create opportunities for exchanges to innovate as Paul Veradittakit who is a partner at VC Company Pantera Capital said:

“We think there is a lot more fuel in this bull run. I think this is great opportunity for centralized exchanges to increase market share by making their onboarding/KYC more efficient, increasing minimums and communication with larger customers, and providing better customer support.”

The FOMO is real as the Main Street investors watch Wall Street investors such as Paul Tudor Jones inject money into crypto but upping the minimum investment fee will only increase the barrier to entry which is a primary selling point of eToro. According to the platform, stocks are also in demand.