Binance, the world’s largest cryptocurrency exchange in trading volume, has suspended all operations after a few hours after was was abnormal trading activity on one of the tokens traded on the stock exchange.
The syscoin team, which is a fork of bitcoin, said on his Twitter feed late in the night Tuesday, about the discovery of possible network issues and appealed to all offices with a request to suspend all operations on tokens SYS. Later, after investigation, the project representatives confirmed that they were able to detect “strange trading activity with unusual activity on the blockchain”.
We are investigating a possible issue on the Syscoin blockchain, nothing is confirmed but we have asked for exchanges to halt trading while we investigate.— Syscoin (@syscoin) July 3, 2018
Despite the fact that Syscoin has not yet revealed details of its investigation, the problem seems connected with the strange transaction SYS on Binance, which accounts for more than 87 percent of the total trading volume of the token.
Data for the last 24 hours show that at one point the price of SYS soared to 96 BTC, whereas the usual price of this token is in the area of 0.00004 BTC. While it is not clear exactly how many tokens SYS was sold at this unusual price.
Co-founder of Syscoin Sebastian Demirel commented on the situation:
I understand that today, Syscoin was sold for 96 BTC. We recorded greater activity on the part of bots and our community told us that they had problems with deposits on Binance.
A few hours after the announcement of Syscoin, Binance said in his blog that they had suspended all trading operations on the platform because of “the need to conduct urgent maintenance platform” in which “trade, withdrawals and other users will be impossible.
While Binance did not specify whether the termination of activity of the events in the Syscoin blockchain, the exchange said in a subsequent communication that the maintenance of the system is due to some “unusual trading activity” on the platform.
Because of the unusual trading activity associated with certain APIs Binance will remove all existing API keys as a precaution for safety. All API users must generate new API keys.
After the event the price of Syscoin increased by about 100% to almost $ 0.5, followed by a rapid decline to about 0.28 USD according to CoinMarektCap.