Binance is pushing again towards claims that it performed a central position within the large liquidation wave that swept by means of crypto markets on October 10, an occasion broadly described as the biggest within the trade’s historical past.
Within the aftermath of roughly $19 billion in wiped‑out positions, some market members accused the trade of manipulating costs for its personal achieve.
Binance co‑CEO Richard Teng has now addressed these allegations immediately, insisting the platform was not “the only set off” of the turmoil and that the selloff hit your entire digital asset ecosystem.
Binance Co-CEO Breaks Down $19B Liquidation Occasion
Talking in regards to the incident, Teng said the sharp downturn was not remoted to Binance. Each centralized and decentralized exchanges skilled comparable spikes in liquidations on the similar time, he famous. In response to him, intense promoting strain emerged throughout buying and selling venues as volatility surged.
Teng attributed the market shock to exterior forces somewhat than inner trade exercise. He pointed to a mixture of macroeconomic and geopolitical developments, together with new US tariffs on China and broader uncertainty in international monetary markets.
These elements, mixed with extremely leveraged positions throughout crypto derivatives markets, created what he described as a “traditional leverage flush.”
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Teng drew comparisons to conventional markets, noting that US equities misplaced $1.5 trillion in worth on the identical day, with about $150 billion in liquidations occurring in equities alone. Against this, the crypto market—considerably smaller in measurement—noticed $19 billion in compelled place closures, unfold throughout all main exchanges.
Whereas acknowledging that many customers suffered losses, Teng mentioned Binance took steps to help affected clients, including that different exchanges didn’t implement related measures. He additionally harassed that there have been no indicators of irregular mass withdrawals from Binance throughout the episode.
In response to the corporate, there have been no indications of inner technical failures or systemic weaknesses. The value motion, Teng argued, was pushed by exogenous market forces somewhat than any trade‑particular situation.
SAFU Fund Hits $1 Billion In BTC
Regardless of the volatility, Teng struck a cautiously optimistic tone in regards to the broader trajectory of digital belongings. He mentioned institutional buyers proceed to allocate capital to the sector, describing their participation as proof that “good buyers are placing cash to work.”
Whereas retail demand has softened in comparison with final yr, he mentioned funding from establishments and firms stays resilient. In his view, the lengthy‑time period growth of the trade ought to be judged by its fundamentals somewhat than brief‑time period value swings.
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Alongside its feedback on the liquidation occasion, the trade announced it has accomplished a beforehand outlined $1 billion Bitcoin buy plan for its Safe Asset Fund for Customers (SAFU).
The trade acquired 4,545 BTC value roughly $304.58 million, bringing the reserve pockets’s complete holdings to 15,000 BTC, presently valued at about $1.005 billion.
Binance additionally said that if the fund’s value falls under $800 million as a consequence of market declines or authorized bills, it is going to mechanically replenish the stability again to $1 billion.
On the time of writing, the trade’s native token, BNB, is buying and selling at $605. It has registered losses of 5% and 29% during the last seven and fourteen days, respectively.
Featured picture from OpenArt, chart from TradingView.com
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