Binance Undergoes Unscheduled Maintenance as Bitcoin Price Shocks Puts a Pressure

  • “Unscheduled system maintenance. Trading paused. Working on it,” – Binance CEO Changpeng Zhao
  • Binance Futures continue unaffected and Funds are SAFU

Looks like even the world’s leading cryptocurrency exchange can’t keep up with the ongoing bull rally. Binance feeling the pressure as the exchange announces unscheduled system maintenance.

While trading, deposits, and withdrawal among other services are halted, Binance Futures working without stopping. As per the official announcement,

“Binance is undergoing temporary system maintenance. Binance has suspended deposits, withdrawals, spot trading, margin trading, P2P trading, lending, redemption, as well as asset transfers from sub-accounts, margin accounts, futures accounts, and fiat wallets.”

“Trading on Binance Futures will continue unaffected during the maintenance period,” added the exchange. This is because it uses a separate matching engine that is working fine but there are no fund transfers between the products either, explained Binance CEO, Changpeng Zhao.

CZ took to Twitter to announce the halt of the services and kept the community updated as he ensured, “Funds are SAFU. No need to panic.”

“One of the market data pushers had issues, matching engine was fine, no data loss or corruption (other than market data). Working on it. Should be fixed soon,” wrote CZ.

The unscheduled maintenance came at a time when the crypto market is enjoying a boom, with Bitcoin going above $10,250 and altcoins up 4 to 14%.

Source: Coin360

While some appreciated the transparency which they say is one of the many things that set Binance apart, others complained of this happening too much, too often.

In the meantime, 60 million USDT has also been minted that has the market awaiting a pump. However, Paolo Ardoino CTO at Bitfinex and Tether put a damper on the things with,

“PSA: Inventory replenish. Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests.”

Struggling to Handle the Crypto Price Boom

As per Binance’s “Performance Incident Report,” last week the exchange couldn't handle the influx of users as a result of surging bitcoin price and volume. The platform experienced “a number of performance issues.”

Daily trading volume has more than doubled in 2020 as the crypto market enjoys a new bull rally. Binance’s daily trading volume has also been peaking at $4 billion, as per CoinGecko.

Although the exchange was “stress-tested” in “crazy” test environments, it was obviously not prepared for this kind of influx in the live environment. Moreover, the exchange kept on adding new features since last year, “thinking we still have 10-100x performance headroom, while in reality, we may be down to 3-5x,” wrote Zhao.

This led to users having issues and experiencing, “5xx internal error,” UI errors of “too many requests,” and API timeout errors over the weekend. Software clogging up also caused incorrect balances shown and update delays. The exchange is also out of Tether with traders unable to place trades as Binance didn’t have enough USDT to back up the loans.

The exchange was working on these issues but couldn’t finish before the “massive traffic” hit these past few days.

While CZ said “It's a fixable problem with a combination of short, mid and long term solutions. Not everything can be implemented right away, but they will get done,” some users believe Binance won’t be able to handle the next bull run.

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