Binance says its systems stayed stable as Trump\u2019s new tariffs on China triggered a major crypto sell-off | Credit: Michael M. Santiago\/Getty Images <\/p>\n
Key Takeaways<\/p>\n
Binance reported that its core trading systems remained fully operational during the extreme market volatility triggered by Trump\u2019s new tariffs.<\/p>\n<\/li>\n
The exchange acknowledged that some assets experienced temporary depegging due to sharp market fluctuations.<\/p>\n<\/li>\n
Trump\u2019s announcement of 100% tariffs on all Chinese imports led to a crypto market meltdown, wiping out nearly $560 billion in market value.<\/p>\n<\/li>\n<\/ul>\n
Binance has claimed its trading systems remained stable during last week\u2019s crypto market turmoil<\/a> triggered by new U.S. tariffs announced by President Donald Trump, rejecting speculation that platform faults worsened the sell-off.<\/p>\n The leading exchange acknowledged that certain assets had faced depegging issues due to sharp market fluctuations and has pledged a $283 million compensation package for affected users.<\/p>\n On Friday, October 10, Trump announced an additional 100% tariffs on all Chinese imports in retaliation for new export controls Beijing is planning for valuable rare earth minerals.<\/p>\n The President said the escalation is due to go into effect on November 1, with added export controls on \u201cany and all critical software.\u201d<\/p>\n \u201cIt is impossible to believe that China would have taken such an action, but they have, and the rest is History,\u201d Trump said on Truth Social.<\/p>\n<\/blockquote>\n The increased trade tensions caused crypto markets to buckle, with $19 billion wiped out in just one day \u2014 surpassing the 2020 and 2022 crises.<\/p>\n Approximately 1.6 million traders saw their positions disappear, with over $7 billion liquidated in just one hour.<\/p>\n Bitcoin (BTC) plunged<\/a> from above $125,000 to briefly below $102,000 during the frenzy.<\/p>\n Roughly $560 billion in value was erased from the total crypto market cap in one day, as Ethereum and other altcoins were rattled.<\/p>\n On Monday, Oct. 13, Binance said in a statement it had conducted \u201ca comprehensive review\u201d of operations during the period of extreme crypto volatility after the announced Trump tariffs.<\/p>\n The exchange said it had found that its \u201ccore futures and spot matching engines and API trading remained operational,\u201d adding that sharp sell-offs across both institutional and retail traders had sent crypto prices tumbling.<\/p>\n Binance said its data showed that \u201cforced liquidation volume processed by [the] platform accounted for a relatively low proportion to the total trading volume,\u201d suggesting that \u201cthis volatility was mainly driven by overall market conditions.\u201d<\/p>\n However, the exchange acknowledged that \u201csome platform modules briefly experienced technical glitches,\u201d while \u201ccertain assets had depegging issues due to sharp market fluctuations.\u201d<\/p>\n Binance said it had \u201ccompleted compensation for users affected by the depegging issues within 24 hours after the event.\u201d<\/p>\n The exchange said it had distributed about $283 million in compensation for losses tied to the depegging of certain Earn products such as USDE, BNSOL, and WBETH.<\/p>\n \u201cWe have fully covered their losses,\u201d the company said, adding that the depegging \u201coccurred after the market sell-off, not before,\u201d disputing any idea that its products caused the crash.<\/p>\n The exchange said it would also compensate users impacted by \u201cbrief lags in the internal transfers of funds and Earn product redemptions\u201d during the volatile period.<\/p>\n \u201cWe will continue to maintain full transparency and continuously update the community on the compensation progress,\u201d it said.<\/p>\n<\/blockquote>\n Binance also addressed reports of erratic prices on certain trading pairs such as IOTX\/USDT, saying \u201chistorical limit orders\u201d had been triggered amid \u201cone-sided liquidity.\u201d<\/p>\n The company said it would \u201coptimize UI display and apply corrections,\u201d but that \u201cthe API interface will remain unaffected.\u201d<\/p>\n \u201cTransparency has always been one of our core values,\u201d Binance said.<\/p>\n<\/blockquote>\n The post Binance Blames Market Conditions, Not Platform Failures, for Crypto Crash Volatility<\/a> appeared first on ccn.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Binance says its systems stayed stable as Trump\u2019s new tariffs on China triggered a major crypto sell-off 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