The largest crypto exchange in the world, Binance is now changing its futures structure while recovering from internal sabotage. Aaron Gong, the Vice President of Futures at Binance, tweeted that its USDETH Perpetual Futures had been sabotaged by an unnamed competitor. According to Gong’s tweet, the attack could have occurred earlier in the week. The executive went on to say that the attack had been instigated by a trader, although it appears that all parties eventually lost. He said that the trader had also lost money, but had also prompted other stop orders to trigger due to which changes would be made to prevent it from happening in the future.
The exchange stated that it would be changing its stop order default from ‘Last Price’ to ‘Mark (index) Price’. In addition, the Price Protection feature would also be activated on all stop orders for ensuring that they would only be triggered if there is a significant difference in figures of Mark Price and Last Price. Furthermore, the exchange would also encourage market makers, which would deepen the order book and give liquidity a boost. Binance believes that these measures would be effective in preventing a repeat of the attack.
This attack on its futures caps off what seems to be a rather torrid month for the exchange, after it had to close down its subsidiary based in Jersey, known as Binance Jersey. According to reports, an announcement had been made by the company last week about shutting down Binance Jersey. This had been opened two years ago with the purpose of expanding into the European markets. Even though the exchange had tried to make Binance Jersey a notable driving force for encouraging crypto adoption in the European continent, the statistics indicated that the subsidiary was faltering. According to the latest data provided by CoinMarketCap, the 24-hour trading volume of the subsidiary had been around $582,000.
The trading pairs for BTC/EUR and BTC/GBP were $210,000 and $240,000, respectively. The figures for all other trading pairs were less than $100,000, while the exchange’s in-house trading token, the Binance Coin remained entirely flat. The exchange also announced that from October 30th, all new deposits of GBP and EUR would be restricted, along with other supported digital assets. Trading and withdrawals of all currency pairs would be allowed by the exchange for all pairs and currencies until November 19th and the final shutdown of the platform is scheduled for November 30th.
Earlier this month, Binance had also lost its number 2 spot in the futures market after it was overtaken by the Chicago Mercantile Exchange (CME) Bitcoin futures market. Skew Markets reported on October 10th that the open interest on the CME Bitcoin futures market had seen a sharp increase by 1,500 contracts. Bitcoin has surged since then and crossed the $13,000 threshold. Nonetheless, Binance can take solace from the fact that it managed to break the duopoly held by BitMEX and OKEx in Bitcoin futures. Currently, both companies are also facing a downside due to criminal investigations being opened into BitMEX and OKEx’s suspicious shutdown.