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Binance technical issues inflict losses to traders

  • Binance experienced lags on webpages that resulted in substantial losses for some traders.
  • The Binance CEO confirmed that the issues had been caused by high trading volumes.


Extreme lags on Binance webpages have caused losses for several cryptocurrency traders and angered the community. At least five traders reported substantial losses caused by the delays in trade settlement and balance syncing, 

The CEO of the exchange Changpeng Zhao confirmed the technical issues in his Twitter account and said that the tech team was working on them. He explained the problem by extraordinary high trading volumes registered on the exchange.

"We are seeing much higher order volumes (number of orders) than Dec 2017/Jan 2018 (the peak). Trade (not order) volume in USD is 1/3 of the peak, but BTC price is 1/3 and ETH price is only 1/5 of the last peak, most other main alt prices are even lower," he tweeted.
 

It is worth noting, that regular users that make trades manually experienced the delays, while API users, bots and trading software were not affected. 

Changpeng Zhao has yet to explain how the exchange will handle the unintended losses incurred by traders, but the amounts pale in comparison with the amounts lost in recent security breach incident. 

Binance backlogs coincided with large market movements. Bitcoin and major altcoins came under selling pressure during late US trading hours on Wednesday. The downside momentum has faded away in Asina on Thursday, but the market is still deep in the red. 


 

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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