Summary

Several altcoins, such as ATOM and IOTX, saw their prices dip to zero on Binance amid the recent crypto market downturn but remained valued on other exchanges.

Key Insights

• During the market crash on October 9-10, altcoins like Cosmos’s ATOM momentarily dropped to zero on Binance, despite maintaining value elsewhere.
• Overall, the crypto market saw a dramatic drop, with Bitcoin plummeting roughly 10–15%, while altcoins on Binance faced even steeper declines, some falling as much as 100% within minutes.

One-day chart ATOM/USDT, IOTX/USDT, ENJ/USDT one-day chart on Binance. Source: TradingView

Causes Behind the Decline

The market selloff yielded approximately $20 billion in liquidations, affecting over 1.6 million traders. Many utilized leverage on Binance to amplify their trades. During the crash, exchanges liquidated collateral connected to leveraged positions, which worsened the rapid price declines.

Liquidation chart Total crypto market liquidations chart. Source: CoinGlass

As trading volumes surged, Binance’s systems faltered, leading to some users facing account freezes and delayed transactions. This temporary lack of buy orders contributed to alternate valuations displaying zero, despite the tokens retaining worth on other platforms.

Binance’s Response

Binance’s Yi He publicly apologized for the issues encountered by users during high market volatility. CEO Richard Teng also expressed regret for the impact on traders, indicating their commitment to enhancing platform resilience during similar tumultuous periods.

This article does not offer investment advice. Each trading decision harbors risks, and readers are encouraged to conduct thorough research before engaging.