Binance Addresses Claims of Tokens Plummeting to Zero

Binance has responded to concerns from users after reports emerged that several tokens on its exchange seemed to drop to $0 amidst a market crash on Friday, attributing this to a user interface issue rather than a real loss in value. During the chaos in the trading market, some altcoins like IoTeX, Cosmos, and Enjin appeared to fall to zero on Binance, while they maintained reliable values on other exchanges.

In a recent announcement, Binance clarified:

“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 on Binance during Friday’s market crash. Source: Cointelegraph

In light of the depegging incident, the crypto exchange has committed to compensating victims, totaling $283 million. Critics, including Kris Marszalek from Crypto.Com, called for regulatory investigations of exchanges that saw substantial losses during the unprecedented market decline.

The episode highlights the volatility in cryptocurrency markets and the ongoing challenges exchanges face in managing user expectations amidst technological glitches.