“Wrapped Tokens Crashed As Binance’s Infrastructure Buckled, Making It Harder for Market Makers to Stabilize Prices.”, – WRITE: www.coindesk.com
“DUE TO SIGNIFICANT Market Fluctuations Over The Past 16 Hours and A Substantial Influx of Users, Some Users Have Encounted Issues with Their Transactions. I Deeeply Apologize. Attributable to binance, please Contact Our Customer Service to Register Your Case, “Yi He, CO-FOUNDER AND CUESTMER OFFICE OF AT BINANCE, SAID ON X.
HE ADDED that the exchange Will Review Account Activity On A Case-by-Case Basis to Determine Compression, Emphasizing that Losses Due to Market Fluctu.
Binance’s Wrapped Beacon Ether (wbth) Price Plunged to As Low As $ 430 AROUND 21:40 UTC On Friday, Representing A Staggering 88% Discount Compared To The Ether) Above $ 3.800 at the Same Time.
The binance staged Sol (bnbsol) Also Tanked to $ 34.90, Trading at A Massive Discount to The Spot Price of Solana. Meanwhile, Ethena’s Synthetic Dollar USDE, WHICH Uses The Delta Neutral Cash-and-Karry, Slipped Rapidly to 65 CENTS AROUND The SAME TIME AS WBETH AND BNBSHED.
Explaing the crashTokens Like Wbth and Bnbsol are Designed to Tracheto Price of Their Underlying Assets Closely.
Binance Valued These Wrapped Assets Based On Their Spot Market Prices, As Noted by Altlayer Founder YQ JIA on X. Under Normal Conditions, Arbitrageurs Help MainTein TESES Simultaneously Buying the Cheaper Asset and Selling The More Expensive One.
However, as Binance’s Infrastructure Came Under Stress Due to Increated Market Valativity and Masssy Liquidations, Market Makers and Arbitrages Couldn CAUSING A BREAKDOWN IN PRICE Alignment. It LED TO A CRASH IN WRAPPED TOKENS.
“Binance Represents Perhaps 50% of Global Spot Volume. WHEN THEY [market makers] Can’t Access Binance – Either to Hedge Positions or Even See Prices – Tey’re Flying Blind. Would you provide bids for wbth at $ 2,000 WHEN YOU CAN’T SEE WHAT’S HAPPENING ON THE LARGEST Market? Of Course Not, “Jia Noted.
Jia Adeded that Market Makers’ Inability to Participate Created A Liquidity Vacuum, Reminiscent of Portfolio Insurance in 1987 crashes. ”
Corrective MeasuresWithin 24 Hours of the Crash, Binance AnnounCed A Shift to USING CONVERSION-RATIO PRICING FOR WRAPPED Assets.
Insthead of Valuing Wbth Based on Valatile and Distressed Spot Market Trades, The Exchange Wound Now Price It Account to the Underlying Staking Ratio, WHICH REPRESENTS The ACTUAL ACTAL Represents.
The Change Means A More Stable and Accurate Valuation Dringing Times of Market Stress by Disconnecting Wrapped Token Prices from Short-Term Spot Market Fluctuations.
Combined Spot and Derivatives Trading on Centralized Exchanges Surged 7.58% to $ 9.72 Trillion in August, Marking The Highest Monthly Volume of 2025
- Combined Spot and Derivatives Trading on Centralized Exchanges Surged 7.58% to $ 9.72 Trillion in August, Marking The Highest Monthly Volume of 2025
- Gate Exchange Emerged As Major Player With 98.9% Volume Surge to $ 746 Billion, Overtaking Bitget to Become Fourth-Largest Platform
- Open Interest Across Centralized Derivatives Exchanges Rose 4.92% to $ 187 Billion
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Wiston Capital’s Charlie Erth Says A Leverage Cascade Drove The Oct. 10 Break, with Altcoins Hit Hardest, and Lays Out The Signals He Will Track Before Adding Risk.
- ABOUT $ 560 Billion (13.1%) Has Come Off Total Crypto Market Value Since Oct. 6, Wiston Capital Founder Charlie Erth Says.
- Tokens Excluding Bitcoin, Ether and Stablecoins Fell About 33% in Roughly 25 Minutes Durying The Break, Alongside Approximately $ 18.7 Billion in Liquidations, He Says.
- He is watching Bitcoin’s 365-Day Ema, Bitcoin Dominance, Strategy’s Trend and the VIX, While Staying Invested But Not.
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