Binance Announcement of Scheduled Maintenance Sparks Fears of Volatility
On Tuesday, the exchange will close for an upgrade expected to continue for about eight hours.
Binance has added to concerns about the crypto market with a recent announcement of maintenance scheduled for March 12. Despite concerning a routine event, the news has led to expectations of market price swings in a pattern seen with earlier maintenance periods that triggered declines in prices.
“Binance will suspend deposits, withdrawals, and trading during this period. Deposits that are not completed before the start of the upgrade will be processed after the upgrade is complete. Please allow some time for deposits to be reflected in your account following the system upgrade,” the exchange team announced.
The maintenance arrives at a time when Binance activity has picked up for both Bitcoin (BTC) and altcoins, with serial pumps and spikes happening for many assets represented on the exchange. On Monday, volumes exceeded an $873 million equivalent over 24 hours, suggesting the maintenance may lower trading volumes and hurt the positions of some assets. Some users showed hostility toward Binance, claiming that the exchange has scheduled the maintenance to manipulate prices.
Binance still holds one of the biggest Tether (USDT) wallets and helps boost the influence of the stablecoin. This fact has also added to the talks of potential market manipulation.
In the wake of the maintenance news, Binance Coin (BNB) preserved its relatively high price, trading at $14.39 as of 11:15 UTC on Monday, down from the recent peak of $15.65. The asset has held firmly among the top 10 coins for weeks as activity on the exchange boosted the prices.
During the upgrade, Binance will communicate regularly, but it is possible that the estimated eight-hour period will not be enough to complete the undertaking. In the past, the exchange has had maintenance go on longer than predicted, sparking fears of a hack or another type of attack.
Binance has also attracted investors with its series of Binance Launchpad projects, as well as limited token sales of selected assets. The exchange supports 442 trading pairs in total, with only a handful of assets having more liquid markets and USDT pairings.