Hong Kong based Cryptocurrency exchange, Binance, suspended all trading activities at around 2AM UTC earlier today. Chief Executive Zhao Changpeng has been leaving regular updates on Twitter on the status of the issue, starting with:
However, the stated ‘Several hours’ was then extended to 10 hours:
The current estimate for Binance going live again is at 4am UTC . Which is still some way off at time of writing. As you can imagine some people have begun to get a little unnerved by this development, including John McAfee who decided to put out the following tweet due to some hacking rumours that have been circulating:
Scrolling through the responses to this tweet it would seem most people are not overly impressed with many accusing McAfee of spreading blatant fake news and thus upsetting the markets. Zhao Changpeng responded to McAfee soon after with the following Tweet:
This will be a bit of an anti-climax for Mr Zhao after his huge exposure in Forbes yesterday as one the richest men in Cryptocurrency.
CZ (born Changpeng Zhao) cut his teeth making high-frequency trading systems for Wall Street’s flash boys, and he built Binance to be a Ferrari. His exchange can process a blazing 1. 4 million transactions a second and on a peak trading day in January processed 3.5 billion new orders, cancels and trades. Speculators (some 25% of them from the U.S.) use Binance to trade 120 different coins, generating $200 million in profits for CZ’s exchange last quarter. BNB, the virtual coin CZ created in August that gives holders a 50% discount on trading fees, has a market cap of $1.3 billion. His stake in Binance and his coins give CZ a personal fortune worth as much as $2 billion.
Cryptocurrency exchanges are always going to suffer from public fear and doubt, in a market that is still virtually unregulated and with a historical track record of exchanges getting hacked the first thought that springs to mind when any exchange freezes all trading is ‘Hack’.
So far Binance have handled this well and have been open and transparent to it’s users throughout the downtime, whether we are being told the whole story is of course an unknown, so until trading commences once again fear will continue to circulate.
We’ll keep you posted.