Binance CEO, Changpeng Zhao (CZ) has reacted to the news of Binance’s suspension of spot trading. In his response, CZ said the suspension surfaced as part of the exchange’s operating procedures. Further, he assured users that their funds are safe as Binance is working to arrest the situation.
Recall, that Binance’s announcement of suspending spot trading sparked unrest in the crypto community. Fueling this uproar is the suspension of deposits and withdrawal of funds on the crypto exchange. Binance statement wasn’t enough to squash the growing fears despite promising to resolve the issue as soon as possible.
CZ while intervening gave an insight into the situation. He explained that the initial analysis spotted some bug issues with the matching engine. Furthermore, the Binance boss said the bug surfaced on a trailing stop order and it will be fixed within two hours.
However, in the subsequent update, Binance announced that the temporary system maintenance has been completed. Though the exchange stated that withdrawals will resume shortly after spot trading starts. Confirming the development, CZ said trailing stops will be disabled temporarily and existing trailing stops will be canceled.
Reactions to the suspension of Spot Trading, Deposits and Withdrawals on Binance
Meanwhile, Changpeng Zhao’s post incurred some responses from affected users who queried the situation. One of the users identified as “tbow” asked why the exchange resorted to the suspension of withdrawals and deposits. In response, CZ said the state of orders in the matching engine may affect available funds for withdrawal in user accounts. Therefore, these features become suspended because Binance’s withdrawal logic checks with the matching engine for security, he added.
Another Twitter user asked if a single trailing order could affect the engine, causing it to halt operations. Consequently, Changpeng Zhao said software bugs happen like that. He went on to illuminate how matching engines are sequential state machines, stating that previous orders often affect future orders. Thus, if one order encounters a bug, the matching engine would stop for security reasons he added.
The growing influence of CZ in the crypto space
Lately, the Binance boss has emerged as a prominent figure in the crypto space. This emerging relevance can be attributed to how CZ overtly engages crypto enthusiasts via his Twitter page. However, the Binance CEO found himself on the bad side of some notable publications, with one of them from Reuters making reference to his Chinese ancestry.