With barely a year since its founding, Binance has managed to gain traction as one of the world’s leading cryptocurrency exchanges. In terms of trading volume, Binance boasts of numbers in the millions, with the popularity of its services spreading across the globe.
In a recent turn of events though, the world-renowned crypto exchange halted its trading services, citing ‘system maintenance’ hours, after one of the Bitcoin forks traded on its platform indicated “atypical Blockchain activity”.
Syscoin’s Abnormal Trading
The crypto token in question was Syscoin, a Bitcoin fork claiming to be a fully decentralized marketplace. Syscoin’s post on twitter on Tuesday at 21:00 UTC mentioned that the company was “investigating a possible issue on the Syscoin blockchain.” The post went on further to say that “nothing is confirmed but” that the company had “asked for exchanges to halt trading” while investigation on the matter continues.
Syscoin is yet to disclose how its investigation is developing. However, it appears as if the issue was caused by the SYS token, previously trading at around 0.00004 BTC, spiking to a much higher price that saw each SYS token change hands at 96 BTC.
In fact, in the last 24 hours, SYS has accounted for about 87 percent of Binance’s trading volume, according to data from CoinMarketCap.
Later on Teusday, Syscoin posted on Twitter, stating that it was taking precautions in a move to halt all SYS trading on exchanges after they had observed “ odd trading behavior coupled with atypical blockchain activity”.
In response to the unusual spike in the price of SYS, Subastian DiMichele ( a co-founder at Syscoin) mentioned to CoinDesk that the company had seen “massive bot activity” and that the Syscoin community “ was having trouble with deposits at Binance.” He also confirmed that Syscoin had traded “for 96 BTC at one point” on Tuesday.
Binance has since halted “trading withdrawals and other account function” on its platform in an announced “system maintenance” move. Furthermore, they have not yet specified whether Syscoin’s irregular trading contributed to the suspension of its services. However, speculation over the matter is on the rise with most traders believing that the issue was caused by a hack on Syscoin. Currently, SYS is trading at about $0.25, with a 21.34 percent gain in the last 24 hours, not long after it was priced at about $0.1 at the beginning of the month.
What do you think the reason behind the irregular trading activity on Binance is? Share your thoughts and opinions in our comments section.