Binance Halts All Trading Tomorrow -- Be Prepared

If you use Binance -- get ready. Tomorrow, May 15, at 3:00 AM (UTC), you won’t be able to make any trades for roughly six to eight hours. If you don’t use Binance -- you might still want to get ready. There could be massive altcoin fluctuations ahead.

Date: 
May 14, 2019
Read time: 
2 minutes

Binance Halts All Trading Tomorrow -- Be Prepared

Date: 
May 14, 2019
Read time: 
2 minutes

If you use Binance -- get ready. Tomorrow, May 15, at 3:00 AM (UTC), you won’t be able to make any trades for roughly six to eight hours. If you don’t use Binance -- you might still want to get ready. There could be massive altcoin fluctuations ahead.

If you use Binance -- get ready. Tomorrow, May 15, at 3:00 AM (UTC), you won’t be able to make any trades for roughly six to eight hours. If you don’t use Binance -- you might still want to get ready. There could be massive altcoin fluctuations ahead.

To protect the future interests of all users, Binance will create a Secure Asset Fund for Users (SAFU). Starting from 2018/07/14, we will allocate 10% of all trading fees received into SAFU to offer protection to our users and their funds in extreme cases. ​

According to Coinmarketcap.com -- Binance is the world’s second-largest exchange. They control nearly $3 billion worth of cryptocurrencies. No wonder they were a target for hackers who withdrew 7,000 Bitcoins worth about $40 million via a single transaction in a “large scale security breach.”

To combat that theft Binance banned all withdrawals and deposits last week. Tomorrow, however, they will also ban trading. The whole site, basically, will go into lockdown. But fear not, tomorrow’s scheduled system upgrade is a “security upgrade” that the exchange’s CEO, Changpeng Zhao (CZ) states will help prevent further such hacks.

In addition, CZ noted that “During trading halt, we will update no less than every 2 hours, as per usual.” This should keep people informed and enlightened. Also, CZ went on to write that:

Once the upgrade is complete, we will make a further announcement and provide users with a 30-minute window to cancel orders, process deposits, withdrawals, and use all other account related functions before trading resumes.

All in all, the communication from CZ and Binance has been refreshingly transparent. CZ has hosted a post-hack live AMA, given a brief outline of measures being undertaken to prevent future security breaches, and continued to generally hold a steady course.

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Most of the confidence people still have for Binance is due to Binance’s SAFU fund. SAFU, the Secure Asset Fund for Users is an emergency insurance fund. CZ commissioned its creation and funding on July 3rd, 2018:

“To protect the future interests of all users, Binance will create a Secure Asset Fund for Users (SAFU). Starting from 2018/07/14, we will allocate 10% of all trading fees received into SAFU to offer protection to our users and their funds in extreme cases. This fund will be stored in a separate cold wallet."

This fund will be accessed to cover all $40 million lost to the hack. Moreover, by having such a fund and using it here, Binance shows that the cryptocurrency ecosystem is far more mature than the days of the Mt. Gox hack.

Indeed, the future of cryptocurrencies is brighter than ever.

Posted by R.R. Hauxley

R.R. Hauxley traveled around the world ... 1 year on 1 Bitcoin. 20 countries, 12 months, 1 Bitcoin. He wrote a book about it: Stolen Wallets and Where to Buy Them. Along the way he met and interviewed the sharpest, brightest minds in crypto today: Vitalik Buterin, Charlie Lee, and more. Today Rafael educates the crypto curious and delves further into the incredible world of blockchain.

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