Binance Resumes Trading After Halt, Denies Any Possibility of Being Hacked

Binance resumes trading, blames server issues

The Hong Kong-based trading firm Binance has resumed operations after being under maintenance for a few days.

The exchange noted in a blog post that it had its system upgrade completed and will be providing its users with a token of gratitude.

“To show our gratitude for your unwavering support throughout the upgrade process, Binance will provide all users with a 70% discount on trading fees (0.03% on all trades, 0.015% with BNB) until 2018/02/24 00:00 AM (UTC).”

Binance shuts down temporarily

The issues began sometime around 6 AM EST on Wednesday, February 7, with Binance’s Twitter account announcing shortly afterward that the exchange was going through system maintenance which might cause performance issues.

The users who had been nervous about the exchange’s system not working until that point breathed a sigh of relief… Binance had not been hacked despite rumors surrounding the system’s performance, after all.

However, after a couple of hours passed with no change in system performance, users started to get apprehensive again. That is when Changpeng “CZ” Zhao, Binance’s CEO, took the initiative to explain the situation to the exchange’s customers, tweeting:

“We experienced a server issue on our replica database cluster, causing some data to be out of sync.  Need to fully resync from master.  Due the size of the data, it will take several hours.  No data is lost.  We appreciate your understanding and support.”

Elaborating on the issue, CZ then explained that the issue will take at least 10 hours to resolve but that the Binance team will keep its customers updated on the progress with tweets rolling out every 2 hours.

He also added that the exchange would allow a timeframe of 30 minutes once the issue is resolved so any orders could be withdrawn before trading resumes.

Binance’s Twitter handle has since been tweeting every 2 hours, with the latest estimate for the resolution of the issue cited at “4 A.M. UTC 2018/02/09”, at press time.

Since this was all a confirmation that the exchange had not been hacked despite the rumors, the exchange’s customers, even though frustrated, have still kept their demeanor in check.

How are the customers taking it?

Some of the customers that are most disturbed by this development cite how the stock market does not stop trading due to server issues and how most of them have lost thousands of dollars in potential revenue from trading within these hours.

However, the customers who have been maintaining their calm so far, also point out in response, that Binance has at least been upfront about the issues, and has not let slow trading drag on, as had been noticed with a U.S. based exchange last month.

Coinbase had experienced severe lagging issues at the start of January 2018, but instead of responding to customer complaints, the exchange had went radio silent for more than a few hours, creating a precarious situation for its customers.

It was not until a couple of days later when exchange officials started to acknowledge the issue and then hired a top exec from Twitter to get their customer service team in order.

Still not an ideal situation

Binance’s only saving grace here is that it is proactive in communication.

Being at the stature that it currently is, one would expect more out of Binance.

If cryptocurrencies do take over as a more primary method of transaction in the future, then these cryptocurrency exchanges will certainly need to up their game, as customers would depend on them for their day to day transactions and their everyday savings. Blocking them out of access to accounts, even if it is due to a system issue would be far from an ideal situation.

We hope that bigger exchanges such as Binance and Coinbase can put systems in place to provide the kind of services that are expected of them. Otherwise, such issues will only increase with time and the growth of the cryptocurrency community.

By | 2018-02-14T22:07:25+00:00 February 14th, 2018|Cryptocurrency News|0 Comments

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