Binance has had some serious problems on February 8, when nobody has been able to trade, buy orders, open new sell orders. There has been nearly a day and a quarter closure and it got many traders asking themselves what is really going on.
The market has’nt been affected by Binance being down, however, all Binance’s prices were frozen the moment the website stopped working, so that was a bit confusing or fooling for users.
Binance does about 15% of the daily trade volume, so of course a massive correction has been seen shortly after the issues with the website.
The users of Binance had to freeze their trades, cancel everything they had open.
After Binance resolving the problems, the market was fully open in comparison to the day before.
What this closure tought us is that one exchange being closed, can really affect the market, especially if it’s as large as Binance. Right now, we are looking at pretty decent and stable prices. All the prices have been stable and the only fluctuations that have been seen were the ones of Bitcoin.
Another thing that was noticed is that as long as Binance was closed, the volatility was pretty much locked away. The exchange does 2 to 3 billion dollars in trade volume every single day. That is what’s keeping certain of these coins relevant and with no significant action, because a lot of their trade volume is done on Binance.
Binance is a massive exchange and a lot of people weren’t trading on February 8 and 9 as they had money either locked in the Binance exchange or locked in an order from Binance.
According to a recent study, Binance can reach as high as 3 billion in 24 hours trade volume, and that can really affect the market.
John McAffee has twitted that they were doing a system upgrade and that the exchange will be back very soon. He added that there were some rumours about the hacking of the exchange . There is no current evidence that this has happened.