- Binance exchange locked withdrawals on some accounts profiting off massively volatile coins.
- CZ explained on Twitter that this was normal market behavior and that sometimes these things happen in free markets.
- The altcoins in question include Sun token (SUN), Ardor (ARDR), Osmosis (OSMO), Fun Token (FUN), and Golem (GLM).
Some altcoins listed on Binance, one of the top crypto exchanges by volume, experienced massive volatility. Some of these tokens rallied as much as 90% in a few minutes.
Binance altcoins explode, but not a hack
On December 11, some of the altcoins on Binance saw a massive run-up that nearly doubled the value of the tokens in under a few minutes. Due to this unusual behaviour from Sun token (SUN), Ardor (ARDR), Osmosis (OSMO), Fun Token (FUN) and Golem (GLM), the exchange suspected it was compromised. Additionally, the centralized platform locked withdrawals of some of the accounts that profited from these altcoin pumps.
Altcoins pumping on Binance
Binance CEO and co-founder Changpeng Zhao (CZ) tweeted that they had to “temporarily lock withdrawals on some of the profiting accounts.” The exchange confirmed in a tweet that the funds were SAFU, and none of these accounts had their API keys compromised.
Shortly after, CZ released an official statement saying that the exchange or the accounts were not hacked and that this was “market behavior.” He further attests that one of the accounts that profited “deposited” into the exchange and that hackers “don’t deposit.”
Additionally, CZ clarified that they did not want to intervene too much.
We are aware of the concept of too much intervention from the platform, “too centralized” attacks, etc. There is a balance to how much we should intervene. Sometimes, these happen in free market, and we need to let it play out.
These altcoins saw an upward of 90% gains in a few minutes but are currently on a swift downtrend, indicating that this was just a short-lived rally and unlikely to last in the short-to-mid-term.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?