Binance Co-CEO Breaks Silence, Provides Insight On October 10 Liquidation Event
Binance is pushing again towards claims that it performed a central function within the huge liquidation wave that swept via crypto markets on October 10, an occasion broadly described as the most important within the trade’s historical past.
In the aftermath of roughly $19 billion in wiped‑out positions, some market contributors accused the change of manipulating costs for its personal achieve.
Binance co‑CEO Richard Teng has now addressed these allegations instantly, insisting the platform was not “the only real set off” of the turmoil and that the selloff hit the whole digital asset ecosystem.
Binance Co-CEO Breaks Down $19B Liquidation Event
Speaking in regards to the incident, Teng said the sharp downturn was not remoted to Binance. Both centralized and decentralized exchanges skilled comparable spikes in liquidations on the identical time, he famous. According to him, intense promoting strain emerged throughout buying and selling venues as volatility surged.
Teng attributed the market shock to exterior forces relatively than inside change exercise. He pointed to a mixture of macroeconomic and geopolitical developments, together with new US tariffs on China and broader uncertainty in world monetary markets.
These components, mixed with extremely leveraged positions throughout crypto derivatives markets, created what he described as a “basic leverage flush.”
Teng drew comparisons to conventional markets, noting that US equities misplaced $1.5 trillion in worth on the identical day, with about $150 billion in liquidations occurring in equities alone. By distinction, the crypto market—considerably smaller in dimension—noticed $19 billion in compelled place closures, unfold throughout all main exchanges.
While acknowledging that many customers suffered losses, Teng stated Binance took steps to assist affected prospects, including that different exchanges didn’t implement related measures. He additionally confused that there have been no indicators of irregular mass withdrawals from Binance through the episode.
According to the corporate, there have been no indications of inside technical failures or systemic weaknesses. The worth motion, Teng argued, was pushed by exogenous market forces relatively than any change‑particular challenge.
SAFU Fund Hits $1 Billion In BTC
Despite the volatility, Teng struck a cautiously optimistic tone in regards to the broader trajectory of digital property. He stated institutional buyers proceed to allocate capital to the sector, describing their participation as proof that “good buyers are placing cash to work.”
While retail demand has softened in comparison with final yr, he stated funding from establishments and companies stays resilient. In his view, the lengthy‑time period growth of the trade ought to be judged by its fundamentals relatively than quick‑time period worth swings.
Alongside its feedback on the liquidation occasion, the change (*10*)it has accomplished a beforehand outlined $1 billion Bitcoin buy plan for its Secure Asset Fund for Users (SAFU).
The change acquired 4,545 BTC price roughly $304.58 million, bringing the reserve pockets’s whole holdings to fifteen,000 BTC, at the moment valued at about $1.005 billion.
Binance additionally said that if the fund’s value falls beneath $800 million on account of market declines or authorized bills, it is going to mechanically replenish the steadiness again to $1 billion.
At the time of writing, the change’s native token, BNB, is buying and selling at $605. It has registered losses of 5% and 29% during the last seven and fourteen days, respectively.
Featured picture from OpenArt, chart from TradingView.com
