Following user reports of certain tokens seemingly plummeting to zero on October 10 amidst market volatility, leading cryptocurrency exchange Binance
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$18.54B
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</tracker-embed-tippy> has issued a statement addressing</strong> <a target="_blank" rel="nofollow noindex noopener" href="https://www.binance.com/en/support/announcement/detail/d9cb0d52d7c142a5be4f49732bd8760c"><strong>clarification</strong></a><strong> on the matter.</strong></p></div>
<p>The exchange asserts that the observed price drops were not reflective of actual asset values but rather stemmed from a <strong>display error</strong> within the trading interface. Coins **did not actually lose all value**, what users experienced was a **temporary platform misrepresentation**.</p><p>The root cause has been identified as <strong>a change in the platform's price display protocol</strong>. Specifically, for certain trading pairs, including IOTX <tracker-embed-tippy title="IoTeX" logo="/crypto-prices/coins/iotex.png" slug="iotex-iotx" tracker-link="https://www.bitdegree.org/cryptocurrency-prices/iotex-iotx-price" :volume="20177192.285271000000000000" :daily-change="6.910000000000000000" ticker="IOTX" :market-cap="140496100.368060000000000000">
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IOTX
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</tracker-embed-tippy>/USDT <tracker-embed-tippy title="Tether" logo="/crypto-prices/coins/tether.png" slug="tether-usdt" tracker-link="https://www.bitdegree.org/cryptocurrency-prices/tether-usdt-price" :volume="257733674765.230000000000000000" :daily-change="-0.080000000000000000" ticker="USDT" :market-cap="179512637180.230000000000000000">
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</tracker-embed-tippy>, Binance reduced the number of decimal places that are displayed for the price.</p><div class="suggested-video-comparisons container">
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<p>This change resulted in the appearance of a $0 value for certain assets on the user interface, but <strong>Binance emphasized that this was solely a "visual issue" and not a reflection of the assets' actual worth</strong>.</p><p>The issue coincided with a significant market downturn that triggered substantial losses for traders employing leverage. Reports indicate that approximately $20 billion worth of open positions were liquidated during this period.</p><p><iframe loading="lazy" class="twitter-embed" src="https://platform.x.com/embed/Tweet.html?frame=false&hideCard=false&hideThread=false&id=1977441317836792102&lang=en&theme=light&width=550px" title="Twitter Tweet Embed" width="550px" rel="noindex nofollow" scrolling="no"> </p><p>Crypto community member ElonTrades <a target="_blank" rel="nofollow noindex noopener" href="https://x.com/ElonTrades/status/1977340254047649966"><strong>posited</strong></a> <strong>that potential exploits of Binance's "Unified Account" system might have contributed to the situation</strong>. The trader further highlighted Binance's announced plans to incorporate external price feeds.</p><p>Consequently, <strong>the USDe stablecoin briefly deviated from its intended $1 peg on the Binance platform, falling to $0.65</strong> and prompting widespread automated liquidations.</p><p>To address the fallout, <strong>Binance</strong> <a target="_blank" rel="nofollow noindex noopener" href="https://www.bitdegree.org/crypto/goon/binance?bd_ref=https%3A%2F%2Fwww.bitdegree.org%2Ftop-crypto-exchanges%2Fbinance"><strong> has allocated $283 million</strong></a> to compensate affected users impacted by the USDe depegging event.</p><p>Recently, Ethena Labs founder, Guy Young, offered his perspective on the USDe price fluctuation on Binance. To understand his explanation, you can <a href="https://www.bitdegree.org/crypto/news/usde-crashes-on-binance-ethena-founder-blames-pricing-method"><strong>read the detailed account here</strong></a>.</p>
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