Will Binance's downtime affect the crypto market?; what's the upgrade for?

11 Mar, 2019 | Updated: 11 Mar, 2019
by Will Heasman
Exchange
Will Binance's downtime affect the crypto market?; what's the upgrade for?

The worlds largest cryptocurrency exchange, Binance, will suspend trading for 8 hours tomorrow to allow for scheduled maintenance. But how will this impact the market? And what’s the upgrade for?

‘Binance will perform a scheduled system upgrade starting at 2019/03/12 2:00 AM (UTC). The upgrade will take approximately 8 hours.’ Reads the official System Upgrade Notice

This was also announced earlier today by Binance CEO Changpeng Zhao, who simply said:

While the Binance funds may be ‘SAFU,’ can the same be said to the rest of the market?

8 hours is an extremely long time in the crypto space, especially for an exchange with an average daily trade volume of over $870 million.

So what happens when this volume ceases to exist?

Traders have already started to speculate as to what may occur, with many suggesting that this may indicate an imminent drop in price:

These speculators may have good reason to be concerned, historically (and now something that is becoming a quasi-tradition) the market has dipped during scheduled maintenance, as nicely graphed out by the Tweet below:

This phenomenon isn’t restricted to Binance though, Historically planned maintenance has played havoc with the market, initiating either a pump or a dump and leaving some investors to speculate that manipulation had occurred.

One notable instance of this happened in August 2017 when the popular exchange BitMEX scheduled maintenance which caused prolonged downtime. During the time in which the exchange was offline, $12 billion was added to the total market cap of all cryptocurrencies, giving Bitcoin (BTC) alone a boost of $300.

Speculation isn’t simply restricted to what the market will do, however. Some are ruminating on what this “big upgrade” actually involves.

Guess we'll find out tomorrow! 

Keep tuned to Chepicap updates on the Binance upgrade and everything else crypto!

Read more: Binance upgrade set for 8 hour downtime tomorrow 12 March, "funds are safu"

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