Due to an unforeseen slowdown in the speed of our data sync, we now estimate for all trading activity to resume at 2018/02/09 4AM (UTC). In the 30 minutes prior to the commencement of trading, users will be able to use utilize all other account related functions. https://t.co/ll1HgPslTU
— binance (@binance_2017) February 8, 2018
Binance, a well known cryptocurrency exchange, has accommodated an increasing trading volume over the past few months especially with the cryptocurrency hype peaking in late 2017. As part of its maintenance initiatives, it disallowed new registrations early in January 2018.
This is understandable because Binance recently claimed the top spot among crypto exchanges in the world as it reached a point where it worked with $2.8 billion in volume traded daily, according to Coinmarketcap. Also, its user base reached 2.9 million users since it had launched in July 2017.
Just last Wednesday, February 7, Binance had to do another shutdown. This was different since it was for all users this time. The sudden, unannounced downtime due to “system maintenance” will run for 12 hours. At least that was what was initially stated by Binance. However, the expected downtime turned out much longer than expected and stretched out to around 2 days such that they will resume operations by Friday morning.
Given the very volatile nature of cryptocurrencies especially this 2018, users were very upset with this development. So much can happen in a span of one day, and a good number of users have expressed this much in Reddit and Twitter feeds.
Cannot handle that Volume😄
— Abrax Trader (@AbraxTrader) February 8, 2018
“Cannot handle that volume.” says one user on Twitter. This is one of the less critical comments on Binance’s post.
Not true. First of all, they said it was "server maintenance" which it was not. Then they said it would be fixed within an hour - also a lie. Obvious you're not a day trader - you would be flipping out loosing thousands of dollars. Let people be mad
— Brandon (@brandonhoer) February 8, 2018
Other users such as this one really questioned what was going on behind the scenes. It is known that some exchanges have had fraudulent activities in the past that came in the form of “hackings” or “maintenance”, and users like this one echo this part of crypto history.
From server, software, or even hardware crashes, people are spreading conspiracy theories. Some go so far as to question Binance’s reputation and that people should simply lose faith entirely.
Binance CEO Changpeng Zhao made a statement to address these concerns. He stated that the problems were from a server issue that caused data to go out of sync, and that the company promised that no data was lost. Best efforts are already in place to resync the information, but each issue has simply required more time for them to be processed.
“Sorry guys, not something we want either,” Zhao said on Twitter. “We didn't have a choice, other than trying to fix it as soon as possible for our users. One of our team literally threw up after the calculation arrived at 10 hours.”
The link cannot be accessed, and the support site is also unresponsive – this much can be considered shady, but Zhao has been transparent about I by assuring users that no data was lost.
The timing of their update is worth noting, and apart from the delays, there really is no indication of Binance lying about their efforts at maintenance. To add to this, it has been a known fact that top cryptocurrency exchanges do maintenance from time to time, and disallow access when this happens. Another popular exchange, Bitfinex, even shuts down on a semi-regular basis while others such as Coinbase disallow access when huge spikes in trading volume happen.