Binance adds new 30% rule following the hack, the community isn't happy...

09 May, 2019
by Will Heasman
News
Binance adds new 30% rule following the hack, the community isn't happy...

Following the 7000 BTC hack Binance incurred a few days ago, customers have unearthed an apparent new rule within the Binance trading system. Now, no orders can be placed above or below 30% of the market price, and for the most part the community isn’t happy…

This revelation has been proliferated by several users on Twitter, who stumbled across the new rule when trying to place an order.   

Now Binance traders won't be able to set buy or sell order high/lower than 30% of the current market price of any cryptocurrency on the exchange. It’s thought the rule change was initiated in order to limit instances of flash crashes or pumps in which a sharp sell-off triggers multiple orders set all the way down to a cryptocurrencies bottom end.

Due to the quiet nature of the rule change, many only found out when trying to place an order, leading to a fair bit of confusion:

Reactions to this seemingly surreptitious rule has been varied, with some noting the benfits of the change and some mourning the loss:

The discussion also occurred on Reddit, with one user wondering about how lower value cryptocurrencies would be affected:

Another suggested that this was a typical problem associated with self regulation:

Others positied that this will likely be reversed once withrdrawls and despotes are once again opened:

The most recent flash crash to occur on Binance happened just last month, when Waves crashed to just 1 satoshi in a matter of minuites:

Another flash crash occurred back in June 2017, when Ethereum (ETH) crashed from its then price of $320, all the way down to $0.10 on Coinbase pro in less than a second following a whale dumping 35,000 ETH in one go.

One quick witted Twitter user managed to capture on video:

Binance has yet to comment on the 30% rule.

What do you think about this new rule? Is this a step in the right direction, or a restriction on the free market? Let us know the comments!

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