- Binance announced the suspension of its spot trading as soon as a bug was detected.
- Other activities remain the same as BNB dips on a two-hour timeframe.
Binance announced the temporary suspension of spot trading on 24 March in a surprise move. However, hope flickered back to life when Changpeng Zhao (CZ) emerged to reassure users about the situation.
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Bug on the spot
At precisely 11:38 UTC on 24 March, the news broke that Binance was experiencing issues with its spot trading service. The exchange promptly released a statement, assuring users that their team was aware of the problem and working tirelessly to restore normalcy.
However, the subsequent update from Changpeng Zhao, the CEO of Binance, provided more clarity on the root cause of the issue.
In his reassuring message to the community, CZ disclosed that a bug in the matching engine had caused the trouble with the trailing stop order. The bug detection necessitated the temporary suspension of spot trading.
Understanding spot trade
Spot trading is a widely adopted method of trading in the cryptocurrency market. It involves the buying or selling of digital assets at their prevailing market price for immediate delivery or settlement.
In essence, spot trading is an on-the-spot transaction between the buyer and seller, with an immediate exchange
It is a fast and convenient trading method that has become the go-to option for most traders. It is usually facilitated by exchanges like Binance.
The instantaneous nature of spot trading allows traders to respond quickly to market movements and capitalize on price fluctuations.
A deeper dive into the Binance chain
BSCscanner revealed that despite the temporary suspension of spot trading, other activities were still ongoing on the network. As of this writing, blocks were still being created, and transactions were still being processed.
This suggests that the suspension of trading was limited to the spot trade function of the network, and other activities were not affected.
However, a review of the transaction history of the Binance chain over the past fourteen days showed a decline in the overall transaction volume.
This could be attributed to the recent market downturn, which has caused some traders to take a more cautious approach to the market. Nonetheless, the market is expected to recover, and transaction activities will pick up soon.
Binance (BNB) on a 2-hour timeframe
After analyzing the two-hour time frame of BNB, it was apparent that it had been on a downtrend. However, there was a slight improvement in its performance as of the time of writing, with a minor gain registered.
Despite the minor upswing, BNB struggled to break free from the bearish trend as it hovered around $323.
Source: TradingView
As of this writing, CZ confirmed that the Binance development team was working diligently to resolve the issue with the spot trading service.
He also emphasized that when exchanges like Binance temporarily halt trading, it usually does not cause significant market price movements.
Realistic or not, here’s BNB market cap in BTC’s terms
Furthermore, he also noted that market prices typically return to normal once the exchange resumes trading. This assurance from CZ provides some relief to traders and investors who may have been concerned about the impact of the trading suspension on the market.
