Suspension and Resumption of Services
On July 3, Binance put the brakes on all trading and withdrawal services due to a red flag regarding irregular trading activities involving Syscoin (SYS). Making the responsible choice, Binance decided to halt operations as a precautionary measure to safeguard its users.
Syscoin’s Response: An Investigation Underway
In a twist that could only be described as a crypto drama, Syscoin quickly chimed in, announcing via tweet that its developers were digging into a possible issue on their blockchain. The developers confirmed they requested exchanges to pause trading while they got to the bottom of this digital whodunit.
Investigation Outcome: A Safe Blockchain
After some digging and a bit of fidgeting, Syscoin reassured everyone that while there were indications of odd trading behavior and unusual blockchain activity, their investigation concluded that the SYS blockchain was indeed safe. In light of this, they asked exchanges to reopen trading for SYS tokens. It’s always a bit alarming when the tokens you thought were stable start exhibiting bizarre behavior.
Binance’s Response: Rolling Back Irregular Trades
Following the alert, Binance took assertive steps to ensure the integrity of their exchange. They removed all existing API keys, prompted users to recreate them, and emphasized that non-API users should refrain from creating new keys — a preventative measure for sure. Binance also took it upon themselves to roll back all trades deemed irregular, like a referee in a soccer game overturning a questionable goal.
Compensation and Protections: The SAFU Initiative
Customers affected by the erratic rise in SYS prices during this period received a warm hug from Binance in the form of a zero-free trading scheme from July 5 to July 14. Meanwhile, the rest of the users benefited from a charming 70-percent rebate on trading fees, paid out in Binance Coin (BNB). In a noble twist, Binance announced the creation of the ‘Secure Asset Fund for Users’ (SAFU) aimed at promoting user safety. This fund will allocate 10% of all trading fees to provide protection for users in extreme cases. It’s like a safety net for your crypto that will be securely held in cold wallet storage.
The Bigger Picture: Binance’s Proven Leadership
Currently reigning supreme, Binance is acknowledged as the largest crypto exchange globally, boasting around $1.5 billion in trade volume in the previous 24 hours, and navigating these strange waters with the grace of a swan. This incident not only reflects the hiccups that can occur in the crypto world but also how exchanges like Binance are willing to adapt and make user safety a top priority.
