Binance Suffers Two-Hour Spot Market Outage Due to Software Bug – Cryptocurrency exchange Binance suspended trading on its spot markets for two hours on Friday, due to a computer bug associated with the trailing stop loss feature.
At 11:38 UTC, the largest cryptocurrency exchange in the world made the announcement that it will be suspending spot markets. A little over an hour later, the Binance CEO Changpeng Zhao, announced that “engine one,” which referred to one of the trading engines, was back up and that it was waiting for the other engines to catch up.
Before saying that the outage followed “standard operating procedure,” CZ referred to the situation as “unlucky.” A trailing stop is a type of market order that gradually reduces a position once the price of the asset hits a number of price triggers.
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Crypto exchanges are prone to experiencing downtime during periods of trading volatility. Gemini suffered a seven-hour outage in December and Coinbase was forced into an outage after an advertisement was shown at last year’s Super Bowl.
The news of the outage led the price of bitcoin (BTC) to drop by approximately $700; however, by the time trading on Binance was brought back up at 14:00 UTC, the price of bitcoin had rebounded to approximately the $28,000 level.
Binance suffered an outage in November 2021 that lead to a lawsuit from a group of Italian investors who claimed to have racked up “tens of millions” in losses. Binance has facilitated over $13 billion in spot trading volume in the past 24 hours, according to CoinMarketCap.