The Bitcoin price fluctuated wildly when Deribit exchange suddenly stopped working
At the same time, the Bitcoin price rose on Sunday; the Deribit futures trading platform suddenly announced an unexpected shutdown. In addition to Deribit, Binance also decided to upgrade the system, which has made many people wonder and ask whether this is just a coincidence or has a profound purpose.
Bitcoin Trader on Deribit
In this situation, many traders feel at a disadvantage and massive damage. And the higher the discontent, the exchange claimed it was an internal system error. So they have to restart all their nodes. Because of this, many users on Twitter voiced their opposition. They found the timing of the error very suspicious and the unplanned downtime to be a great annoyance given the way the Bitcoin price was going at the time.
Due to an internal system error, we were forced to restart all the nodes for a successful fix.
Unfortunately, this caused an unplanned downtime.
We apologize for any inconvenience caused.
— Deribit (@DeribitExchange) November 25, 2019
However, Deribit is not the only exchange to close at such a critical time. Binance also decided to upgrade the system. They decided to close the exchange between two to four hours on Sunday. However, the difference is that the upgrade process of Binance has been planned. Moreover, Binance has also sent notification emails to all users.
#Binance‘s scheduled system upgrade has now begun and will take approximately 2-4 hours.
— Binance (@binance) November 25, 2019
After Deribit and Binance, several major cryptocurrency exchanges also experienced problems. The first is BitMEX sending out a mass email to some of its customers using ‘to’ instead of blind carbon copy and doxxing thousands of customers. After that, Deribit also officially acknowledged that they were at fault, and that error led to a Bitcoin flash crash.
Bitcoin price temporarily dropped to $ 7,700. This caused traders margin to suffer significant losses. However, Deribit also announced it would refund the losses to users.
Every time you have unplanned maintenance it just so happens to be the most critical time for price movement.
You say internal system error but the timing is just so unbelievably suspect every time. It really is a bit sus guys.
— Jon (@JonAddison6) November 25, 2019
Binance and influence on the market
Although Binance claims to suspend trading only for a few hours. However, this event reappeared amid the collapse of Bitcoin price. And this does not escape the eyes of the community because many people have responded negatively to this announcement.
Binance explained that, during this scheduled upgrade, they would:
“Suspend deposits, withdrawals, spot and margin trading, C2C trading, lending & redemption, as well as asset transfers from sub-accounts, margin accounts, and futures accounts and fiat wallets during this period.”
However, Binance also gives traders 32 hours of preparation since the maintenance announcement. However, when the decision was made, there certainly was a change in the sentiment towards a bearish market.
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