BNB, the native token of Binance’s ecosystem, climbed to a report excessive of $1,355 following a turbulent weekend that noticed $20 billion wiped from the broader crypto market.
Information from CryptoSlate confirmed that BNB surged 17% in 24 hours, outperforming different top-ten cryptocurrencies by market capitalization.
The rally got here even amid President Donald Trump’s Oct. 10 tariffs on China triggered panic promoting throughout danger property, together with digital currencies. Bitcoin has failed to supply comparable power, sitting $10,000 under its latest all-time excessive.
So, BNB’s robust value restoration mirrored renewed confidence in Binance’s ecosystem regardless of the trade’s latest operational points.
Binance pays $283 million in compensation
Over the weekend, Binance confronted robust criticism for its platform’s dealing with of the acute value swings that disrupted buying and selling exercise.
Lots of the trade customers complained of flash crashes that drove a number of tokens to near-zero ranges and frozen accounts that prevented them from closing or hedging their market positions.
These disruptions intensified frustration amongst merchants, who argued that Binance’s dominant place in international buying and selling quantity meant it ought to have been extra resilient to market turbulence.
In response, Binance introduced it had distributed $283 million in compensation to customers affected by extreme value dislocations throughout a number of merchandise, together with USDE, BNSOL, and wBETH.
The trade attributed the losses to intense volatility and non permanent failures in its collateral and pricing modules.
Binance stated it reimbursed affected customers and pledged to increase redress for delays in transfers and redemptions.
In the meantime, on-chain analysts speculated that the disruptions may have been triggered by a coordinated exploit concentrating on Binance’s unified margin system.
Martin Hiesboeck, Head of Analysis at Uphold, stated the malfunction uncovered a structural weak point: liquidation costs drew primarily from Binance’s personal risky spot feed as an alternative of aggregated market information. In consequence, collateral values fell quicker, prompting pressured liquidations that deepened the decline.
Hiesboeck famous that the incident appeared timed between a scheduled software program patch and its deployment, making a vulnerability window that will have brought on $500 million to $1 billion in cumulative losses.
He warned that the scenario echoed systemic danger occasions akin to Terra’s collapse and burdened that centralized danger fashions stay fragile throughout excessive volatility.
Binance defends system
Nevertheless, Binance rejected the notion of a focused exploit, emphasizing that its core spot and futures engines operated usually in the course of the turmoil.
The corporate stated its inside evaluate confirmed pressured liquidations made up solely a minor share of buying and selling quantity, suggesting the broader market shock, not an inside error, drove the sell-off.
The trade additionally clarified that temporary value dips in tokens like IOTX and ATOM resulted from long-standing restrict orders. It added that some person dashboards’ “low value” readings have been show errors slightly than executed trades.
Binance co-founder He Yi additionally known as the circulating assault theories “FUD,” asserting that Binance’s matching engines and settlement methods “remained steady all through the occasion.”