Binance revealed a substantial compensation package on Sunday, worth over $283 million, for users affected by Friday’s technical issues and market volatility. Losses related to de-pegged assets like USDE, BNSOL, and WBETH were the main focus of this compensation.
Significant selling by institutional and retail investors between 20:50 and 22:00 UTC on October 10 was the catalyst for the market’s upheaval. Asset values fell precipitously as a result of this selling, with the most severe de-pegging taking place just after 21:36 UTC. Binance demonstrated its dedication to openness and responsible handling of such matters by processing the compensation within 24 hours of the incident.
The exchange pointed out that past limit orders from 2019 were triggered at times of low liquidity, which resulted in strong price swings in some trading pairs. Furthermore, Binance explained that some trading pairs showed “zero prices,” which were a display error rather than genuine trades of zero value.
A whopping $19 billion in leverage was lost as a result of the market meltdown, which mostly affected long positions. The price of Bitcoin fell from $122,000 to $102,000, while Ethereum saw sharp drops as well.
