- Binance halts spot trading temporarily to address an ongoing issue.
- CEO Changpeng Zhao tweets about a bug in the trailing stop order.
- Deposits and withdrawals paused, funds secured with #SAFU. Binance has over 60% spot trading volume.
On Friday, the prominent blockchain and cryptocurrency exchange, Binance, disclosed that it has halted all spot trading on its platform for the time being while it addresses an ongoing matter.
In addition, Binance’s CEO, Changpeng Zhao, took to his Twitter account, @cz_binance, to provide an update, explaining that the cryptocurrency exchange had come across a problem with a trailing stop order due to a bug.
According to Zhao’s tweet, the preliminary examination revealed that the matching engine experienced an unusual bug in relation to a trailing stop order. The team is working to resolve the issue and expects the recovery to take between 30-120 minutes, although a more precise ETA is still awaited.
Meanwhile, as per standard operating procedure (SOP), deposits and withdrawals have been halted, while the funds remain secure with Binance’s #SAFU protocol. It is noteworthy that Binance is responsible for more than 60% of all cryptocurrency spot trading volume.
As per a report from Arcane Research, the world’s largest cryptocurrency exchange has further strengthened its dominance in the Bitcoin spot volume market, with a share of over 90% in recent quarters. This growth has been attributed to the platform’s zero-commission policy, which has drawn in a significant number of traders.
A trailing stop order is a market order that gradually reduces a position when the asset’s price reaches specific triggers. However, cryptocurrency exchanges are known to experience downtime during periods of trading volatility.
For instance, Gemini faced a seven-hour outage in December, while Coinbase’s platform was temporarily unavailable after a Super Bowl advertisement was aired last year. The recent news of Binance’s trading suspension resulted in a $700 dip in the price of bitcoin (BTC).
Nevertheless, by the time Binance resumed trading at 14:00 UTC, bitcoin had returned to roughly the $28,000 level. It’s worth noting that Binance experienced an outage in November 2021, which resulted in a lawsuit by a group of Italian investors claiming to have lost “tens of millions” due to the issue.
