- According to the stock exchange, payments have been suspended due to problems with Single Euro Payment Area (SEPA) transfers caused by payment processing issues.
- Binance’s response that it is not sure when the problem will be resolved was the main factor creating fear, uncertainty, and doubt (FUD) about the exchange. Binance Coin (BNB), the exchange’s own coin, was also affected.
- Binance stated that the mistakenly made announcement has been deleted. In its response through the customer support account on Twitter, the exchange stated that withdrawal and deposit transactions will function properly until September 25.
A scandal in the Bitcoin and cryptocurrency exchange has caused concern in the cryptocurrency market, and users on the exchange are waiting for an explanation to be convinced.
Rumors about Binance Exchange are on the Agenda
Concerns about the financial stability of Binance are increasing, and the exchange has not done much to alleviate these fears. On August 21, Binance announced in a now-deleted post that withdrawal and deposit transactions in Europe have been suspended.
According to the stock exchange, payments have been suspended due to problems with Single Euro Payment Area (SEPA) transfers caused by payment processing issues. For those who are unaware, SEPA allows users in Europe to participate in cashless cross-border payments through credit or bank transfers between European countries and a few non-EU countries.
However, Binance did not disclose the facts until a customer brought up this issue. A user named Nesh stated that they had been trying to withdraw money from the exchange for several days but did not receive any results, and the withdrawal did not reflect in their bank account.
Binance’s response that it is not sure when the problem will be resolved was the main factor creating fear, uncertainty, and doubt (FUD) about the exchange. Binance also stated the following in its announcement:
“We understand the discomfort caused by this situation and are actively working to resolve the issue as soon as possible. However, we currently do not have a specific timeframe for the resumption of SEPA transfers.”
BNB is Negatively Affected in the Market
Following this response, BNB was negatively affected in the market and its value decreased. According to data, the value of BNB decreased by 1% in the last 24 hours. At the same time, it may be on the verge of falling below $200.
In addition to the price drop, Santiment showed that the funding rate for BNB turned negative. Funding rates are periodic payments made between traders with long and short positions.
Meanwhile, Binance stated that the mistakenly made announcement has been deleted. The exchange stated through its customer support account on Twitter that withdrawal and deposit transactions will function properly until September 25. They also mentioned that they will find a suitable payment provider.
Repercussions of FTX Exchange
This statement did not stop the crypto community from panicking. According to an analyst, Binance does not have the ability to support BNB without backing it with Bitcoin. Therefore, regular issues regarding the price movements of BNB are observed. The analyst stated that market participants should be cautious about the exchange and also believed that the current situation of Binance is similar to what happened before the collapse of FTX.
When the funding rate is positive, it indicates that traders are bullish on the price movement. However, in the case of BNB, a negative funding rate of 0.011 implies a widespread bearish market sentiment around the coin.
One of those who commented on this issue was Adam Cochran. Cochran did not hide his dissatisfaction with how Binance conducts its operations and accused the company of trying to liquidate in small amounts. According to him, the reason for this is to limit the negative effects of a large liquidation in the market. Cochran said the following:
“So far, it seems that Binance is really trying to liquidate this in small pieces, but people are pushing to test BNB more. Since they claim it is OTC and they have already separated the money in the books, why don’t they just settle it immediately?”
Despite all this, CEO Changpeng Zhao (CZ) has not made any statements so far – an unusual move for the Binance CEO.
