Against the backdrop of the market collapse, users began to massively complain in social networks about failures in the work of the largest cryptocurrency exchanges. Among them were almost all the giants of the market: Coinbase, KuCoin, Binance, and others.
A sharp drop in quotations almost always entails an influx of people on the exchanges who want to liquidate assets, or simply exchange illiquid assets for more profitable options.
Due to technical issues, many Binance clients were unable to close positions on time, losing significant amounts. Therefore, they turned to representatives of the crypto exchange in order to find out if the Secure Asset Fund for Users, which they launched after the Syscoin incident back in 2018, is working. Many hope that with the help of it they will be able to compensate for at least part of the losses.
The day turned out to be sad not only for the main cryptocurrency on the market but also for stablecoins, since they failed to support the peg to the dollar, which significantly increased the load on CoinGecko and CoinMarketCap.
Numerous customer appeals to decentralized exchanges quickly raised the average commissions on the Ethereum network and the gas price to an anti-record of 1,500 Gwei, which was one of the main reasons for the fall in the ETH rate.
Now the situation has improved and this figure dropped to the average of 269 Gwei.
A couple of hours ago, when the gas price was at an average level of 975 Gwei, Binance had to temporarily stop the withdrawal of ERC-20 tokens and ETH. Soon, representatives of the exchange resumed the withdrawal but warned customers about a temporary increase in the commission for withdrawing funds against the background of volatility in gas prices.
Meanwhile, Frank Chaparro summed up what was going on in the market, calling stablecoins "volatile", gas prices "outrageous", and also mentioned billions of dollars in liquidations and disruptions to major trading floors.
If today does not become “Black Thursday 2.0”, it will at least be remembered by the crypto community for the coming years.