Cryptocurrency exchange Binance has issued an update to users after several tokens on its platform apparently plummeted to $0 following Friday’s market meltdown, saying that while the tokens had not actually crashed, a “display issue” caused users to see prices at $0.
There were several altcoins that appeared to crash to $0 on Binance during Friday’s market turmoil, including IoTeX (IOTX), Cosmos (ATOM), and Enjin (ENJ), despite tokens trading well above $0 on other centralized cryptocurrency exchanges.
According to an announcement from Binance on Sunday, the token has not actually lost 100% of its value on the platform. Binance explained as follows:
“Certain trading pairs, such as IOTX/USDT, have recently reduced the number of decimal places allowed for minimum price movements, resulting in the price displayed in the user interface being zero. This is a display issue and not because the actual price is $0.”
During Friday’s market crash, altcoins appeared to drop to $0 on Binance. sauce: cointelegraph
The Binance exchange was at the center of controversy following Friday’s market crash that wiped out up to $20 billion in leveraged positions. This was the worst 24-hour cryptocurrency liquidation in market history.
Related: Market crash has “no long-term fundamental impact” — Analyst
Traders speculate that Binance may have faced a coordinated attack
Speculating on the cause of the incident, crypto trader ElonTrades said Binance may have been the target of a malicious exploit, resulting in Ethena’s USDe synthetic dollar losing its dollar peg to Binance and falling to just $0.65.
According to ElonTrades, the attackers exploited digital assets posted to Binance’s “Unified Accounts” feature, which uses oracle data from internal order books rather than external oracles.
Binance previously announced that it would resolve the issue by sourcing price feeds from external oracles by October 14th, giving threat actors an opportunity to exploit this mechanism and create large price discrepancies, Elon Trades theorized.
sauce: electricity
He concluded that this triggered a series of liquidations of up to $1 billion on Binance, which rippled through the market.
Binance has already announced a total of $283 million in compensation to victims who were liquidated as a result of the depegging event.
Nevertheless, Chris Marszalek, CEO of cryptocurrency exchange Crypto.Com, called for a regulatory investigation into the centralized exchange, which suffered heavy losses in Friday’s historic market crash.
magazine: What do crypto market makers actually do? Liquidity or manipulation
Discover more from Earlybirds Invest
Subscribe to get the latest posts sent to your email.
