5 Binance users protested outside its Shanghai office but Binance says the protest wasn’t real
According to a report by Wu Sai Blockchain, several Binance users protested outside the Binance office in China.
A Binance spokesperson told Decrypt: “This looks like a paid article from a competitor. We don’t have an office in China, and operates through a global, decentralized structure.”
People are protesting in front of Binance office
The office is in the middle road residential district just 400 meters away from the Bijie Tech office, which became the first Binance office when the technology company pivoted from selling exchange software to running its exchange in 2017. However, since the closure of its last office, which held more than 100 people, the majority of Binance’s Chinese staff work hack.
The reason for the protest is probably because investors have suffered a lot of losses when dealing with Binance, especially in the initial exchange offerings Binance Launchpad. Besides, investors suffer injuries when unable to close trading positions and the issue of FTX leverage tokens.
Two people at the protest were affected by the FTX situation
The FTX token issue – a simplified way of adding leverage to trade – has rocked the Binance community recently. However, FTX works differently from normal leverage trading, and if users don’t know how to use them, they can quickly lose money.
On March 12, the Bitcoin price dropped from $ 7,900 to $ 5,900, down 25%, causing massive damage to users. They blame Binance because the exchange is not alert and has enough tools for traders. However, the exchange believes that users have ignored “pop-up warnings” on the platform. They quickly removed tokens, liquidating any open positions, with many users selling their coins at a substantial loss.
The main reason for delisting is we find many users don’t understand them. Even with pop-ups warning users each time, people still don’t read it. Given they are some of the most actively traded token, it is bad for business to delist them. Not an easy choice. But …
— CZ Binance ??? (@cz_binance) March 28, 2020
At least 200 affected users, each losing up to $ 250,000, have started establishing Telegram groups on the FTX issue. Users complain that the exchange shows incorrect data. Binance acknowledged this as a problem but often replied that it did not affect user transactions, according to many interactive screenshots or users who did not have any active transactions during that time.
An email was sent to an affected user saying:
“Our platform noticed the unsynchronized data from the trading view, which could be different from the FTX on March 12. FTX has made a public statement regarding this issue and explained the reason that it took the Binance markets longer to fall was because of the following reasons: Customers were buying ETH and liquidity providers ran out of ETHBULL on Binance.”
Another issue is that Binance said:
“The tokens would move in a strict 3x ratio when instead, it was flexible between 1.85x and 4.5x.”
After March 12, Binance removed a paragraph of information about the ratio from its announcement blog post.
One affected user and admin of a group dedicated to the issue:
“We’re not doing a lawsuit yet, but it’s something we would consider going forward. In the meantime, we’re spreading awareness of the situation and trying to get into negotiations with Binance.”
According to Decrypt, Binance offered one user, who lost $ 91,000, $ 100 in the form of Tether (USDT), and a one month upgrade to their VIP tier. Someone who lost $ 5,000 was offered either a 1 level upgrade to their VIP tier on Binance for two months or two $ 150 USDT vouchers. Another was offered $ 500 in USDT and an update to their VIP status.
- Tokyo-Based Cryptocurrency Exchange BitFlyer Reported A 750 Million Yen Loss For The Financial Year 2019
- Korea, China, And Australia Are Betting On The Long-Term Potential Of Cryptocurrency And Blockchain