Today, October 11, Binance has announced a compensation plan for users affected by the latest industry events. On October 10, the largest Crypto liquidation event took place in history. It was also amplified by the price decoration of USDE, BNSOL and WBET, which led to forced liquidations that affected the positions of assets of some binance users. Earlier, the platform revealed an update on the decoration of the three tokens. Here's what happened, Binance plans for the affected victims and why we should remain optimistic.
Crypto liquidation and the current market condition
On October 11, the general capitalization of Crypto Market is over 3.74 trillion dollars, decreasing by more than 9% in the last 24 hours, as a result of the largest liquidation in industry history. The crypto liquidation of the last 24 hours totaling nearly $ 19.3 billion. Over 16.78 billion in long positions were liquidated and 2.5 billion in short positions, according to coinglass data.
Crypto liquidations in 24 hours – Coinglass data The same data shows that, in the last 24 hours, over 1.65 million traders have been liquidated, and the largest liquidation took place on Hyperliquid. Over $ 10.25 billion were liquidated on DEX, with more than 9 billion in long positions and over 968 million in short positions. Bybit registered over $ 4.63 billion in liquidation, with more than 4.3 billion in Longs and over 315 million in shorts. Binance had liquidations of over $ 2.39 billion, of which 1.41 billion in Longs and over 982 million in short positions in the last 24 hours.
Crypto liquidations in 24 hours on exchanges-Coinglass data on October 10 marks the largest day of crypto liquidation of all time, exceeding the Covid pandemic and other major events. Over $ 16 billion in Long positions were liquidated yesterday and more than 2.4 billion in shorts. Binance has recorded the largest Crypto liquidations, according to coinglass data.
Crypto – Coinglass Binance data graphics has experienced a high system load due to intense market activity, but problems have been solved, according to his grades on October 10th.
Decoration of USDe, BNSOL, WBETH
On October 11, Binance revealed that the recent price decoration of the three tokens, USDE, BNSOL and WBETH led to forced liquidations that affected the positions of assets of some users. These tokens have been used on margin markets/futures/derivatives as guarantees, synthetic positions and hedging, and the sudden decrease in their value has triggered liquidations. USDE dropped temporarily to $ 0.99, BNSol went down to $ 102 before returning over $ 195 on October 11, and WBETH reached $ 876 before climbing over $ 4,097 today.
Binance's compensation announcement
In the official announcement, Binance said that the team performed an analysis on: users affected by details regarding the adequate compensation measures, the Exchange has worked on improving risk management controls to alleviate similar events in the future. Binance mentioned that it is not necessary for users to contact or register with the support team, asking them to be patient while the platform works to solve all the problems. Yi He previously addressed the subject, saying that due to the fluctuations of the market of the last day and a significant influx of users, there have been problems related to transactions, but an in -depth analysis will be carried out, and the victims will be compensated according to the activity of each account. However, she stressed that losses resulting from market fluctuations and unrecognized profits are not eligible for compensation. Yi He also said that Binance never runs away from problems and always assumes responsibility, remaining engaged to serve users as best as possible. She ended her message saying that the market remains volatile at this time and it takes caution. A few minutes ago, the platform announced that, following its analysis, it will compensate all the users of futures, margin and loan affected in 72 hours, and the compensations will be automatically distributed directly into the users' accounts, as follows: all users of futures, margin and loan who have owned USDE, BNSOL and WBETH as guarantees and were affected by 10:36, (UTC), will be compensated. The amount of compensation will represent the difference between the market price of October 11, 00:00 (UTC) and their liquidation price. Users who have other cases besides the ones specified above can contact Binance Customer Support, send applications and receive assessments.
Binance's prevention plan
In the same announcement, Binance revealed that, in order to prevent recurrence, implement new protective measures and adjusted the relevant parameters: the redemption price will be added to the weights of the price index of BNSOL, WBETH and USDE. The USDe index rule will include a minimum price threshold to stimulate stability. The frequency of the revisions of the risk control parameters will be increased to ensure dynamic adjustments according to the market conditions.
UPTOBER – Expected to come back soon
Despite the huge crypto liquidation event on October 10, optimism must return to Crypto. The unfortunate event took place after Bitcoin reached a new ath over $ 126,000 on October 6, then descending to $ 104,000 levels on October 11th. However, it is important to emphasize that, at the time of writing this article, Bitcoin has returned and is currently traded over $ 112,000. Buy Bitcoin from a broader perspective, Bitcoin had the same price two weeks ago.
The price of BTC in USD today although some voices maintain FUD and state that the industry is not reliable, it is essential to look at the overall image and to observe that Bitcoin is only 11% below its new ATH, despite the fact that the industry was hit by the largest liquidation event in history. This event took place against the backdrop of major geopolitical tensions, but Bitcoin is expected to recover after the «weak hands» have left the market in recent days. The recovery of the digital assets from $ 104,000 today shows the first signs of Bullish return. It is worth mentioning that an important announcement has brought optimism to a global level – following a meeting in Egypt, a fire termination was announced between Israel and Gaza. Also, a new reduction in the interest rate from the US Fed is expected this month, another Bullish factor for the market. The institutional interest for the BTC continues, and the global adoption is also increasing. This is an excellent opportunity to accumulate more bitcoin and other cryptocurrencies. Buy Bitcoin as the founder said, Justin Sun, earlier, the unit is the most important thing in the Crypto space, despite the volatility and tragic events, more or less artificially orchestrated. Overall, it is expected that the market will resume its upward trend after this «calculated reset», as some voices in the industry called it.