Is It Just A Technical Issue?
Earlier today, one of the best-known cryptocurrency exchanges Binance has paused all trading. The announcement was posted on Binance's official twitter page as a tweet and on their blog. In their blog post, the pause of trading is caused by temporary system maintenance. This caused Binance to temporarily pause deposits, withdrawals, P2P trading, lending, redemption, and asset transfers.
Binance Futures is continuing operations unaffected by the maintenance.
Changpeng Zhao also known as CZ, and Binance's CEO has taken to Twitter to discuss the pause of trading. He also elaborated on what is occurring behind the scenes and the root cause for the system maintenance. CZ also put rumors and trader's fears of a possible hack to rest.
Funds are #SAFU. No need to panic.— CZ Binance 🔶🔶🔶 (@cz_binance) February 19, 2020
One of the market data pushers had issues, matching engine was fine, no data loss or corruption (other than market data). Working on it. Should be fixed soon.— CZ Binance 🔶🔶🔶 (@cz_binance) February 19, 2020
Apparently, there was some form of error with Binance's matching engine. Luckily there was no major loss of data associated with this glitch. CZ further reassured traders that Binance will be back and running soon.
While many might have feared that the pause of trading is indicative as a hack. This is apparently not the case. Binance was previously hacked in May 2019 and lost 7000 BTC although no client suffered a loss as they were covered by the SAFU fund. The fund was designed to protect clients from any potential losses in case of hacks.
It appears that the temporary pause of trading may frustrate
some traders temporarily it will not have much effect on Binance as an exchange
or Binance Coin.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado