The cryptocurrency exchange Binance stated that several tokens on its platform apparently dropped to $0 after the market crash on Friday. Binance issued an update to users, clarifying that these tokens did not actually crash but were displaying a price of $0 due to a "display issue."
During the market turmoil on Friday, several altcoins appeared to drop to $0 on Binance, including IoTeX (IOTX), Cosmos (ATOM), and Enjin (ENJ), even though these tokens remained well above $0 on other centralized cryptocurrency exchanges.
According to Binance's announcement on Sunday, these tokens did not actually lose 100% of their value on the platform. Binance explained:
The Binance exchange became the center of controversy after the market crash on Friday liquidated up to $20 billion in leveraged positions—marking the most severe 24-hour cryptocurrency liquidation event in market history.
According to cryptocurrency trader ElonTrades, Binance may have become a target of a malicious attack, which caused Ethena's USDe synthetic dollar to lose its dollar peg on Binance, dropping to just $0.65.
ElonTrades stated that the attackers exploited the digital assets published to Binance's "Unified Account" feature, which uses oracle data from the internal order book rather than external oracles.
Binance previously announced it would fix this issue by obtaining price information from external oracles before October 14. ElonTrades speculated that this provided a window of opportunity for threat actors to exploit the mechanism and create significant price discrepancies.
He concluded that this triggered up to $1 billion in cascading liquidations on Binance, spreading to become a contagion across the entire market.
Binance has announced a total compensation of $283 million for victims who were liquidated due to the de-pegging incident.
Nevertheless, Kris Marszalek, CEO of cryptocurrency exchange Crypto.com, called for regulators to investigate centralized exchanges that suffered significant losses during Friday's historic market crash.
Related: Trump’s tariff threats trigger panic, cryptocurrency sentiment index falls to six-month low
Original article: “Binance Claims Tokens Did Not Drop to $0 During Market Crash, Due to 'Display Issue'”
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