Binance users were met with confusion and shock when some of the prices of the cryptocurrencies on the website showed zero. Due to this incident, the exchange received some backlash from users, with people thinking that the exchange is going into liquidation.
However, the matter was quickly resolved by Binance when they clarified that the actual price of the token was not zero, but it only showed zero on the website due to some kind of glitch or error.
Here’s what happened
Blockchain investigator, PeckShieldAlert, took to X(Twitter) to report, “Users are reporting display issues with their Binance wallets, with balances and token prices showing as zero. The wallet interface appears unstable, Binance Wallet.”
After many tokens on the platform seemed to fall to $0 following Friday’s market meltdown, cryptocurrency exchange Binance provided users with an update, stating that the tokens did not crash that badly but rather displayed a $0 price to consumers because of a “display issue.”
Despite the tokens remaining well above $0 on other centralised crypto exchanges, several altcoins, including IoTeX, IOTX, Cosmos, ATOM, and Enjin, seemed to drop below $0 on Binance amid Friday’s market turbulence. Binance said on Sunday that the tokens did not truly lose all of their value on the platform.
Also Read: Binance Co-Founder CZ Donates $11 Million In BNB To Giggle Academy For Global Education
Binance gives a statement
Binance explained, “Certain trading pairs, such as IOTX/USDT, recently reduced the number of decimal places allowed for minimum price movement, causing the displayed prices in the user interface to be zero, which is a display issue and not due to an actual $0 price.”
Following Friday’s market fall, which resulted in the greatest 24-hour cryptocurrency liquidation in market history and the removal of up to $20 billion from leveraged positions, the Binance exchange became the focus of debate.
However, after Friday’s volatility led the assets to fall from their initial price, Binance reported that it had paid $283 million to users of three Binance Earn assets.
Traders blame hackers
Crypto trader ElonTrades believed that the event may have been triggered by a malicious hack that targeted Binance, causing Ethena’s USDe synthetic dollar to lose its dollar peg on Binance and tumble to only $0.65.
ElonTrades claims that the attackers exploited digital assets uploaded to Binance’s “Unified Account” functionality, which uses internal order book oracle data rather than external oracle data.
ElonTrades argued that threat actors had a window of opportunity to take advantage of the system and cause significant price disparities because Binance had previously said that it would resolve the issue by sourcing price feeds from external oracles by Tuesday.
Despite this, the CEO of cryptocurrency exchange Crypto.com, Kris Marszalek and the founder of Hyperlink, demanded regulatory inquiries into centralised exchanges that suffered significant losses in Friday’s unprecedented market meltdown.
Also Read: White House Talks “Heating Up” On Possible Trump Pardon For Binance Co-Founder Changpeng “CZ” Zhao