In addition, Binance’s CEO, Changpeng Zhao, took to his Twitter account, @cz_binance, to provide an update, explaining that the cryptocurrency exchange had come across a problem with a trailing stop order due to a bug.
According to Zhao’s tweet, the preliminary examination revealed that the matching engine experienced an unusual bug in relation to a trailing stop order. The team is working to resolve the issue and expects the recovery to take between 30-120 minutes, although a more precise ETA is still awaited.
Meanwhile, as per standard operating procedure (SOP), deposits and withdrawals have been halted, while the funds remain secure with Binance’s #SAFU protocol. It is noteworthy that Binance is responsible for more than 60% of all cryptocurrency spot trading volume.
As per a report from Arcane Research, the world’s largest cryptocurrency exchange has further strengthened its dominance in the Bitcoin spot volume market, with a share of over 90% in recent quarters. This growth has been attributed to the platform’s zero-commission policy, which has drawn in a significant number of traders.
A trailing stop order is a market order that gradually reduces a position when the asset’s price reaches specific triggers. However, cryptocurrency exchanges are known to experience downtime during periods of trading volatility.
For instance, Gemini faced a seven-hour outage in December, while Coinbase’s platform was temporarily unavailable after a Super Bowl advertisement was aired last year. The recent news of Binance’s trading suspension resulted in a $700 dip in the price of bitcoin (BTC).
Nevertheless, by the time Binance resumed trading at 14:00 UTC, bitcoin had returned to roughly the $28,000 level. It’s worth noting that Binance experienced an outage in November 2021, which resulted in a lawsuit by a group of Italian investors claiming to have lost “tens of millions” due to the issue.
