By Geoffrey Smith
Investing.com — Binance, the world’s largest cryptocurrency exchange, paused spot trading on Friday due to what its chief executive Changpeng Zhao called a minor glitch.
“Initial analysis indicates matching engine encountered a bug on a trailing stop order (a weird one)” Zhao tweeted, adding that he expected the issue to be resolved within two hours. “Waiting for more precise ETA. Deposits & withdrawals are paused as a SOP (standard operating procedure).”
Zhao signed off with his customary reassurance to clients that their deposits are safe.
“Funds are #SAFU,” he said, referring to the exchange’s Safe Asset Fund for Users, a reserve fund initially seeded with $1 billion in assets.
The incident comes at the end of a polarized week for cryptocurrencies, which have enjoyed a sharp rise in interest worldwide as the collapse of three U.S. banks and Credit Suisse (SIX:
) sparked fears about the stability of the mainstream financial system. Crypto enthusiasts have long argued that digital currencies offer protection from a system vulnerable to hyperinflation due to years of loose monetary policy.
reacted negatively to the news of Binance’s action, dropping nearly 2%. However, it was still up on 0.6% on the day, against a backdrop of fresh selling in European and U.S. banking stocks.