Binance unexpectedly went down today for temporary maintenance. Changpeng “CZ” Zhao, the CEO of Binance, stated that there was a problem was with the API end-point.
Following the crash, users rushed to social media to demand recompense for lost opportunities.
Service Outage Causes Losses for Binance Traders
Binance released a statement at 14:04 UTC on Dec. 21, announcing a complete suspension of “deposits, withdrawals, spot and margin trading, P2P trading, OTC Portal trading, savings & redemption, as well as asset transfers from sub-accounts, margin accounts, futures accounts, and fiat wallets.”
Futures trading was unaffected. Binance told traders that they would be given 30 minutes notice at some point during the day to allow them to “cancel orders, make deposits and withdrawals, and make asset transfers before trading resumes.” Trading resumed at 18:00 UTC.
However, for many day traders, this was not good enough.
Binance users took to Twitter to complain of major losses due to closed trading during a period of sudden downtime on Dec. 21.
Traders were unable to capitalize on fluctuating prices, with many traders claiming losses due to a major downturn in the price of the recently-listed JUV token while trading was unavailable.
I hope JUV doesn’t dump. OMFG…….. Who is responsible for our loss?????
— Nied ~ (@Niederknien) December 21, 2020
While CZ assured users that funds and user data were intact, the downtime caused many users to miss their chance to sell as JUV token prices tanked 30%.
COMPENSATE OUR LOSSES!!!!!!
COMPENSATE OUR LOSSES!!!!!! COMPENSATE OUR LOSSES!!!!!! COMPENSATE OUR LOSSES!!!!!! COMPENSATE OUR LOSSES!!!!!! COMPENSATE OUR LOSSES!!!!!! COMPENSATE OUR LOSSES!!!!!! COMPENSATE OUR LOSSES!!!!!! COMPENSATE OUR LOSSES!!!!!!
Juv %30 dump😡😡
— YeniDünya (@cryptoparafist) December 21, 2020
Twitter user Farhan Zubair stated that he bought into JUV “just minutes before the crash,” adding that he could have “sold at 5% loss, which is what I do. Now I have to bear the entire loss. It’s a totally avoidable loss.”
Others found themselves on the verge of being liquidated. Another Twitter user, Roy The Boy, spoke to Crypto Briefing and stated he had lost faith in Binance due to the downtime.
It cost us alot of money sir
— Roy The Boy (@Roychengyouzhe) December 21, 2020
Roy told Crypto Briefing that he had been trading The Graph token when “the system just jammed” without warning.
The Graph token has fallen 17.88% in value so far today, and Roy states that he will be looking to DeFi alternatives for trading in the future. This is the second time Binance has gone down in the last week, also crashing on Dec. 16 amid high trading volume.