Something is going very wrong at the big Binance right now, as spot trading has been completely stopped on Changpeng Zhao’s platform. “We are aware of an issue related to spot trading on Binance. All spot trading is currently suspended while we work to resolve the issue as soon as possible,” Binance said via Twitter.
First analysis
An initial analysis of the exchange platform shows that the problems are not too bad. It concerns a bug in the matching engine, which should link orders. The error is in one trailing stop order, which apparently is not working properly at the moment, possibly causing damage to users. Binance expects it to take around 30 to 120 minutes to fix the error, it said 30 minutes ago.
Both deposits and withdrawals are currently paused as a “standard procedure” if Binance is to be believed. In response to the news, the Bitcoin price fell sharply for a while, but it is now above $ 28,000. It seems that the market is not overly concerned about the situation at Binance.
Let’s hope that it is indeed what Binance indicates and that the problems are completely resolved within 30 to 120 minutes. If Binance is in bigger trouble, it would come at a very bad time for Bitcoin. After all, the price is finally recovering a bit from the miserable year 2022.
‘Little influence on the price’
If Changpeng Zhao is to be believed, the failure of the matching engine at Binance probably little effect on the price. “If the world’s largest stock exchange stops trading, prices won’t move that much. If there is movement in the price on the smaller exchange platforms, Binance’s deeper order book will restore it once markets reopen there, causing these people to lose money. Traders know this,” said Changpeng Zhao.
So for now it is waiting for the return of Binance, which is also exciting somewhere. The coverage seems fine and the updates are strong. But somewhere the fall of FTX has caused a small trust problem, so this doesn’t feel very nice either. Probably nothing going on, but you never know in this industry.