Exchange says price glitch stemmed from decimal adjustment, not an actual collapse
Binance has clarified that reports of multiple tokens crashing to zero during Friday’s crypto market sell-off were the result of a technical display issue, not an actual market collapse.
The exchange confirmed Sunday that the prices of tokens such as IoTeX (IOTX), Cosmos (ATOM), and Enjin (ENJ) briefly appeared to drop to $0 on users’ screens. However, prices on other exchanges remained stable — confirming the issue was limited to Binance’s user interface.
Market participants also noted that Ethena’s synthetic stablecoin (USDe) briefly lost its peg on Binance, plunging to around $0.65, while remaining close to $1 elsewhere. Some analysts, including prominent trader ElonTrades, suggested that attackers might have exploited Binance’s “Unified Account” feature, which relies on internal oracle data rather than external sources.
“Certain trading pairs, such as IOTX/USDT, recently reduced the number of decimal places allowed for minimum price movement, causing the displayed prices in the user interface to be zero,” Binance explained. “This was a display issue and not due to an actual $0 price.”
The glitch occurred amid Friday’s historic market crash, which erased roughly $20 billion in leveraged positions — the largest 24-hour liquidation event in crypto history. The timing fueled widespread speculation among traders that Binance had suffered a deeper systemic failure.
Binance to Switch to External Oracles
Binance has since confirmed plans to migrate its price feeds to external oracles by October 14, a move designed to enhance price integrity and prevent manipulation.
Meanwhile, the exchange said it has allocated $283 million in compensation to users affected by the temporary USDe depegging and related liquidations.
Despite the reassurance, industry leaders like Crypto.com CEO Kris Marszalek have called for regulatory reviews of centralized exchanges following the turmoil.
As the dust settles, Binance insists the zero-price readings were cosmetic, not catastrophic — but the incident underscores the fragility and interconnectedness of modern crypto trading systems.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.