Most of the cryptocurrencies in the market have been operating in the red zone after a rumor about a possible Binance hack had been circulating. Several Reddit users have commented that their alt-coins had been sold at market rate without any announcement.
At the moment, the situation has been solved and the market is operating in green for the last few hours. It is still down in the 24 hours’ time frame.
Binance Hack Spread FUD
Several Reddit and Binance users have commented that the famous cryptocurrency exchange sold their alt-coins at market rate.
“Binance just sold all my alts at market rate and I have got just the Bitcoin now. Is it because of account getting hacked or Binance bot issue? I have raised a ticket for this,” commented a user.
Binance is one of the most important cryptocurrency exchanges on earth. Indeed, it is the top cryptocurrency exchange in the world by trading volume.
The company has also released an update about this situation explaining the unauthorized market sells. Apparently, the accounts that were compromised were those that registered their API keys for being used on other platforms or for setting up trading bots. But the exchange says that their platform has not been compromised.
The information released by the exchange reads as follows:
“We are investigating reports of some users having issues with their funds. Our team is aware and investigating the issue as we speak. As of this moment, the only confirmed victims have registered API keys (to use with trading bots or otherwise). There is no evidence of the Binance platform being compromised.”
Binance CEO Changpeng Zhao has also commented on this situation trying to calm the markets down. He wrote on Twitter that the user’s funds are safe and that some irregularities have been detected. As in the Reddit post written by Binance, Zhao said that the accounts were compromised by pishing activities from the past.
At press time, all the irregular trades have been reversed, according to Mr. Zhao and all deposits, trading, and withdrawals have been resumed. Apparently, the hackers lost money during the hack attempt and this money will be donated to Binance Charity.
Binance has reversed all irregular trades. All deposit, trading and withdrawal are resumed. will write a more detailed account of what happened shortly. Interestingly, the hackers lost coins during this attempt. We will donate this to Binance Charity.
— CZ (not giving crypto away) (@cz_binance) March 7, 2018
Binance has also asked users to be very careful with phishing hacks that could affect the whole cryptocurrency market as it happened on Wednesday.
When the information started to spread on every social network, Bitcoin lost, in a matter of minutes, more than $1,000 dollars. For those who have been in the cryptocurrency market movements of 10%-20% are normal market behaviors.
When the FUD passed, Bitcoin recovered almost 50%, reaching almost $10,200 dollars per coin. Now the market has stabilized and Bitcoin is being traded around $10,100 dollars.
Of course, not all the market was operating negatively. One cryptocurrency, Viacoin, raised more than 40% and reached $3.5 dollars. Furthermore, it has also seen an increased trading volume during the day.
Now, most of the cryptocurrencies are having gains in the last few hours. Just 15 of the top 100 cryptocurrencies by market capitalization are losing part of their value and none of them is from the top 20.