Ah, the marvelous world of crypto, where numbers dance like sugarplums and wallets weep like wilted flowers! Binance, that grand wizard of exchanges, has waved its wand and *poof*-restored trust after a market crash turned wrapped tokens into confetti. wBETH, BNSOL, and USDe took a tumble, but fear not! A whopping $283 million compensation plan has been conjured for the unlucky souls who rode this rollercoaster. 🎢💸
The trouble began when Binance Earn markets, tied to Ethena’s USDe, Solana’s BNSOL, and Ethereum’s wBETH, decided to play a game of “lose the peg.” Oh, what a jolly time it was-for chaos, not for traders! The exchange, with a tip of its hat and a sheepish grin, promised to pay back those who traded futures, margin, and loan markets using these tokens as collateral. The window of woe? A mere 40 minutes between 21:36 and 22:16 UTC. 🕰️🤦♂️
Binance Co-Founder Yi He, with a bow so deep it could rival a courtier’s, publicly apologized. “Significant market fluctuations and a substantial influx of users,” they said, as if the platform were a tea party overrun by elephants. 🐘☕️ “If you lost money,” Yi He chirped, “do contact our customer service-we’ll sprinkle some fairy dust your way!”
Due to significant market fluctuations over the past 16 hours and a substantial influx of users, some users have encountered issues with their transactions. I deeply apologize for this. If you have incurred losses attributable to Binance, please contact our customer service to… 🎩✨
– Yi He (@heyibinance) October 11, 2025
When Infrastructure Throws a Tantrum
On that fateful Friday, Binance’s systems threw a tantrum, leaving traders and market makers scrambling like ants at a picnic. The wrapped tokens, poor dears, lost track of their actual values. “When they can’t access Binance… they’re flying blind,” AltLayer Founder YQ Jia quipped, comparing it to the 1987 portfolio insurance crisis. Oh, the irony! History repeats itself, but with more emojis. 🚀🌪️
USDe’s price took a nosedive below $0.66, though it remained steady on other exchanges. Ethena Labs CEO Guy Young huffed, “It’s not a depeg if only one venue lost its marbles!” Fair point, but tell that to the panicked traders. 🤡📉
On events of last Friday to be absolutely clear:
i) Ethena’s mint and redeem function had zero downtime and was processing the largest number of withdrawals in its lifetime – more than $1b in a few hours and $2b in a 24hr period with zero issues.
ii) Primary liquidity venues… 🧙♂️🔮
– G | Ethena (@gdog97_) October 12, 2025
Binance’s Magical Fixes
To prevent future mishaps, Binance unveiled a new pricing system, linking wBETH’s value to its underlying ETH ratio instead of volatile spot trades. A soft price floor for USDe was also installed-because who doesn’t love a safety net? 🛠️🎪
Sharp price swings in tokens like IOTX and ATOM were blamed on outdated limit orders and display errors. Meanwhile, Binance’s native token BNB soared to $1,315, up 14.42% in 24 hours. Hooray for silver linings! 🎉📈
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2025-10-13 13:35