Bitcoin custodian Nostr pauses deposits after assets reach ‘maximum capacity’
Bitcoin infrastructure developer Nostr Assets has halted deposits following high user activity.
According to an announcement posted on Telegram on December 5, Nostra Assets organizers warned, “Please wait for further announcements and do not attempt to submit to NostraAssets for the time being.” The service, which allows users to trade Satoshis, or 1/100 millionths of a Bitcoin (BTC), says it has logged more than 70,000 new users and attracted 280 bitcoins in novel deposits since Oct. 30 through the Lightning and Taproot networks. 11.8 million dollars) during that period.
On December 4, Fiatjaf, creator of the Nostro protocol, which allows users to exchange their social profiles and followers across multiple platforms, accused the Nostro property group of engaging in affinity fraud. “Nostrasets has nothing to do with the Nostra protocol itself. It just borrows the nose in name. You shouldn't put any sat into this platform,” said Fiatjaf. The case has not been proven in the legal institution.
Developers Nostr Assets dismissed the allegations as “baseless”:
“NostrAssets uses Nostr, Taproot Assets, and Lightning in its construction, making it compatible with Nostr. However, it is important to emphasize that Nostr is a decentralized, open source, and censorship-resistant transfer network that anyone can build.”
1/ This thread aims to address the baseless questions raised by @fiatjaf. Our key goal in building the NostraAssets ecosystem is to enable developers to create business use cases on both the Lightning Network and Nostra. https://t.co/mcceRECEWL
— Nostr Assets Protocol (@NostrAssets) December 3, 2023
The following day, the total number of fungible token (NFT) sales on the Bitcoin network exceeded $1 billion. Meanwhile, the market value of Ordinals developed on the Bitcoin network has reached $1 billion. Invented by Web3 developer Rodermore in January, BRC-20 tokens have surged in popularity as the biggest technological breakthrough in the 15-year-old blockchain.
Bitcoin Ordinals is a numbering system that assigns a unique number to each individual satoshi, allowing for tracking and transfer. Combined with Bitcoin's encryption process, which adds an additional layer of data to each satoshi, this allows users to create unique digital assets on the Bitcoin blockchain. However, the current token on Binance, ORDI, is not affiliated with the developers of Bitcoin Ordinals.
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