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Accidental Attack on Binance Futures Platform All Cleared Up

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A small bout of panic was sparked when it appeared that a bad actor had attacked the newly launched Bonance Futures Platform. Initially, it was thought to be one of its own market makers, and well known to Binance. 

CEO Changpeng Zhao quickly took to Twitter to allay fears of liquidation of anyone’s positions when the perpetrator crashed the BTC/USD order book from $10,324 to $10,024. Zhao began by explaining that the attacker was known to Binance and that they had started their own futures exchange a few months back.

However, on following up, the CEO expressed that the client had acted accidentally due to a bad parameter on their side. The overall result of this rollercoaster of a false alarm was that the attacker – better called a client now – was the only one who lost any money.

Binance’s futures platform has faced a bit of criticism after launching, but there is no denying the interest and the uptick in the contracts with $150 million coming in last week. Binance began by launching its platform as an invite-only offering with two different options which were then voted over. 

However, a commentator on Twitter claimed that both the options lacked basic features, which are essential for ease of use. This followed Zhao apologizing publically to BitMEX for plagiarizing their procedures. 

It may appear that the futures platform from Binance has been off to a bit of a rocky start, but mostly it seems mostly to be PR fluff. For instance, a Binance spokesperson told Cointelegraph that “minimum contract size granularity is actually 0.001, @doublejump [the Twitter commentator] accidentally thought it was 1 BTC.” 

More so, the plagiarism faux pas was also quickly dealt with thanks to Zhao’s amicable tweet in apology for plagiarizing the procedures. This saw the company gain a little more respect for being open and upfront about the issue. 

Futures remain an ever-increasing avenue of interest for investment in the cryptocurrency space. Since their institutional launch in December of 2017 through CME and CBOE, there have been bigger and bigger numbers coming from these contracts. 

So much so that CME has now filed to double the monthly open positions for their clients due to the increased demand and interest in them. Binance entering these waters is also a good sign for the normalization of Bitcoin investing as the exchange has become a trend-setter in many respects within the ecosystem.

Darryn Pollock
Darryn has been interested in the blockchain and cryptocurrency space since he heard about Bitcoin in 2015. He then decided to use his journalism degree to report on this fascinating fintech space in 2016, and has not looked back since.

Nugget’s News: Crypto Market Update 16th September

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