Crypto exchange Binance has issued a statement following a significant market drop that led several tokens on its platform to appear to plummet to $0. The company clarified that this drop was due to a “display issue” in their user interface, not an actual loss of value.

Earlier today, many altcoins, including IoTeX (IOTX), Cosmos (ATOM), and Enjin (ENJ), seemed to crash to $0 during the market’s chaos, even though they maintained their value on other exchanges.

Binance explained in an announcement:

“Certain trading pairs, such as IOTX/USDT, recently reduced the number of decimal places allowed for minimum price movement, causing the displayed prices in the user interface to be zero, which is a display issue and not due to an actual $0 price.”

Altcoins appeared to drop to $0 during market turmoil.
Altcoins appeared to drop to $0 on Binance during Friday’s market crash. Source: Cointelegraph

This incident sparked controversy, as Binance became the focal point of criticisms following a market crash that wiped out approximately $20 billion in leveraged positions—marking the most significant 24-hour liquidation event in cryptocurrency history.

Speculation About Possible Exploits

Some traders suspect that Binance may have been subject to a coordinated attack, which allegedly affected the pricing of the USDe synthetic dollar. According to crypto analyst ElonTrades, attackers exploited weaknesses within Binance’s “Unified Account” feature, which relies on internal order-book data instead of external oracles, creating substantial pricing discrepancies.

Binance announced plans to remedy this by sourcing price feeds from external oracles by October 14.

Following these events, Binance has committed to compensating $283 million to users who were liquidated due to the incident.