One minute, Bytecoin was on Binance, and then it just disappeared out of thin air. No one was able to access the cryptocurrency, withdrawals and deposits were broken, and thousands of holders were suddenly greeted with the possibility that they may have lost all of their money.
Over the last 24 hours, this was the reality that Bytecoin holders had to face as cryptocurrency outlets began to declare the whole thing a massive scam. But blockchain-based coins don’t just disappear like that.
A statement by the Bytecoin team was released soon after the calamity hit to clarify the situation. They explained that Bytecoin’s listing on Binance led to an enormous amount of volume that its core software apparently couldn’t handle.
“Due to the large amount of miners who were using the old software, a bug appeared in the network consensus. That bug was the cause of the network’s instability. [...] Currently, the entire Bytecoin development team is working hard to solve this issue ASAP,” they wrote.
According to the team, the diagnosis is complete, but treatment is still underway. Although most bugs have been fixed, they’re still got some grinding to do before they can have everything back online.
As early as Tuesday, the Bytecoin team warned that the unusually high load on their networks was causing some instability, warning holders not to make any transfers “until the situation is taken [sic] under control.”
As soon as it was included in Binance’s cryptocurrency offers, the coin bounced 165%, reaching (quite literally) the price of a pretty penny before immediately crashing.
If Bytecoin holders wish to trust the ever-mysterious team’s statements, they’ll just have to wait for their trades to come back online. However, there’s no guarantee that the price of the cryptocurrency won’t dip after trading opens again.