What Happened: KingTiger Casino, an online crypto gambling platform backed by blockchain gaming company FunFair, has been forced to temporarily halt its operations.
According to an update on the KingTiger website, the platform has temporarily closed its casinos due to congestion on the Ethereum ETH/USD network.
KingTiger said the network congestion made it impossible to run games in their current format.
“We are actively researching solutions and hope to be back with a new range of features and games in our casinos soon,” the company said.
Users will still be allowed to access their digital wallets linked to the platform and can opt to keep funds stored in King Tiger’s non-custodial wallet or move them to another ERC-20 address.
The website is powered by FunFair’s Ethereum-based FUN Token FUN/USD, an asset developed specifically for the online gambling and gaming industry.
Why It Matters: Ethereum’s scaling issues have long been prevalent within the crypto industry, but the upgrades introduced in the recent London Hard Fork are expected to resolve some of them.
With one such upgrade, EIP-1559, now in play, the old first-price auction transaction fee mechanism has been replaced by a congestion-dependent posted-price-style mechanism.
Still, when congestion levels are high, the average transaction fee on the network is still likely to be on the higher side.
As of now, transaction fees were around $20 per transaction, while fees on decentralized exchange Uniswap (CRYPTO: UNI) were as high as $29.
ETH Price Action: Ethereum shares are down 3.87% at $3,040.94 Thursday at publication.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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