Trading Error Confuses Binance Futures Market
Anomalous trading activity was noticed on the Binance futures market, but it turned out to be a mistake, not a concerted attack.
The Binance futures platform noticed anomalous activity on Monday morning. Initially, the trading activity was considered an attack aimed at disrupting the newly launched futures market.
But it turned out the event was based on a technical issue. The trades were made by an old client of Binance, with multiple previous trades.
Binance’s CEO, Changpeng “CZ” Zhao, received some flak for first announcing an attack, before clarifying the issue. But the event also underlined the improved liquidations mechanism of Binance, which aims to decrease the risks for futures traders. The trading anomaly was seen as another risk for Binance, coming just weeks after the exchange admitted that some of its traders had their passport pictures leaked.
Binance uses an index of Bitcoin (BTC) prices, and does not liquidate based on futures price activity. This prevents deep losses, as usually seen on BitMex.
Binance launched its futures markets about a week ago, after completing a test period. The futures market launched with volumes of around $150 million, with invitation-only mode for now. The futures products are only in the BTC/USDT pair.
Despite the recent positive news, Binance Coin (BNB) stagnated around $20.81. The coming days will show if the launch of Binance.US will have a positive effect on the asset. The price of BNB remained relatively depressed despite the announcement of the latest token sale, or IEO.
Band Protocol is currently in the ticket claim stage, with the lottery to participate in the sale scheduled for September 17. In the past, BNB market prices have risen slightly during the lockdown period before the IEO.
Binance is also currently in the launch process for its lending program, seeking to lock several types of digital coins and tokens, for a relatively high annualized percentage rate. Currently, lending for most assets is in the preparation stage. But 200,000 BNB have been staked in a 14-day trading period, along with 30,000 Ethereum Classic (ETC).