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Exactly 7 days ago Binance, the largest cryptocurrency exchange by adjusted volume, was hacked for 7,000 BTC ($42M at the time of the hack). As promised by the CEO himself, Binance is about to resume withdrawals and deposits on May 14, around 11PM EST.
Final stretch, 11PM Tuesday, EST + a few hours. Thank you for patience, cooperation and support so far! 🙏🙏🙏
During trading halt, we will update no less than every 2 hours, as per usual. https://t.co/SATeIBlW1l
— CZ Binance (@cz_binance) May 14, 2019
How Can Binance Make the Market Dip After Today’s Extreme Surges?
For 7 days, users of the world’s largest exchange could not withdraw their cryptocurrencies. Just two of Binance’s Bitcoin and Ether wallets hold more than $100M of users’ crypto alone. Today the market has experienced enormous growths, with Bitcoin over $8,000, Ether surpassing $200, and XRP spiking by more than 20%.
The first possible scenario of Binance reopening withdrawals and deposits is that a lot of users will decide to close their positions after great gains and get money out of the exchange after being locked there for 7 days.
Traders closing today’s gains and withdrawing money on a large scale could then cause a market correction.
However, the crypto market is unexpected, and some key characters believe that this is just the beginning of another great crypto bull run. This scenario could lead to Binance users depositing fresh money into their accounts, pushing today’s spikes even higher.
On May 7, Binance reported that 7,000 Bitcoins were stolen and sent to 7 different addresses. The hackers behind the attack have not been caught yet. Binance used SAFU funds to cover its losses.