As the status of large exchanges in the circle becomes more and more important, as their influence penetrates into every corner of the industry but lacks checks and balances, users have to be more careful about every move of exchanges.

Following the outage of Binance on February 19, Binance is down again today.

Starting at 17:04:56 on March 4th, Binance experienced a trading suspension problem. The CEO of Binance, Changpeng Zhao, said that the reason for the suspension of this transaction was the failure of the message broker. During the outage, Binance suspends deposits, withdrawals, spot and leveraged transactions, C2C transactions, Binance treasure subscription and redemption, and fund transfers (sub-accounts, leveraged accounts, contract accounts, and fiat currency accounts).

In less than half a month, Binance suffered another serious downtime. It is understood that the reason for the last suspension of trading was a problem with the market data push module.

As the most international of the three major digital currency exchange giants, Binance's "maintenance rate" appears to be too high. Every time the trading is suspended, the price of Bitcoin falls, which may be caused by panic among users who are worried about the status quo of Binance.

After Binance announced the suspension of trading and maintenance, Bitcoin fell from $8,820 to $8,693, and other digital currencies also turned from ups and downs. Among them, ETC and BSV lost the most, with daily declines of 4.51% and 5.13%, respectively, as of this writing.

Some retail investors joked: "In the past, the dealers needed real money to sell, but now they only need Binance to shut down for maintenance." There are also currency holders who are worried about their behavior: "There are too many unstable factors in the currency circle, and the changes of giant whales. And the downtime of large exchanges will bring panic, and gradually feel less optimistic about the halving market.”

1. As the richest exchange, why is the technology unsatisfactory?

The richest place in the currency circle is definitely the exchanges, and the most profitable exchanges are Binance.

However, as the richest party in the currency circle, Binance's technical performance is not satisfactory. Not only did the two outages occur at the beginning of this year, but in May last year, Binance was also stolen by hackers with 7,000 bitcoins, and bitcoin fell sharply when the news came out.

For users, the most basic requirement for digital currency exchanges is to ensure the safety of user assets. Every time the exchange goes down and loses coins, users will panic. After the former digital currency exchange FCoin ran away, the trust in the centralized exchange in the circle became more fragile, and frequent suspension of trading may cause users to lose confidence in the exchange.

According to Carbon Chain Value, there are already some users who are ready to propose crypto assets from Binance and turn to other digital currency exchanges.

As one of the largest digital currency exchanges, it is impossible for Binance not to know the importance of technology. The investment in technology research and development is only a small part of the revenue earned by Binance. However, it is puzzling why Binance has repeatedly failed technically.

2. "Sexy marketing" deserves people's vigilance

Behind the frequent outages, Binance recently launched a female employee named "66" for "sexy" marketing. With explicit photos and a hot figure, "66" grabbed the attention of the circle. For the sake of "66", many people expressed that they "want to go to Binance to recharge".

In any case, the purpose of this round of marketing has been achieved.

However, frequent downtime and outrageous marketing have made people more worried about the status quo of Binance: What is the status of Binance's funds? Has the user's assets been misappropriated? As the largest digital currency exchange, why does it need to attract users in such a "bold" way?

It is not groundless to question whether Binance has misappropriated user assets. After all, Binance was recently reported to have misappropriated users’ digital currency for voting. The simple story of the matter is: the witness nodes of STEEMIT jointly want to soft fork the STEEM chain, intending to directly freeze the coins in Justin Sun's hands. However, big exchanges such as Binance and Huobi actually used the coins stored in the exchanges to vote, removing other witnesses. It is unacceptable that Binance even closed the STEEMIT withdrawal function.

3. Summary

As the status of large exchanges in the circle becomes more and more important, as their influence penetrates into every corner of the industry but lacks checks and balances, users have to be more careful about every move of exchanges.

However, the competitive landscape of digital currency exchanges continues, and users continue to vote with their assets. Although Binance has achieved the top position in the industry, it cannot be taken lightly. At present, Binance still needs to make continuous efforts in terms of user asset security, transaction depth, and good technology.
Responsible editor; zl

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