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The trading services were likely stopped due to some potential issues with the functioning of the Syscoin blockchain network as Binance caters to 87% of trading volumes for the SYS coin.
On Wednesday, July 4, the world’s largest cryptocurrency exchange by trading volume – Binance announced in a blog that it has suspended all the trading services on its platform as the exchange will “undergo system maintenance,” during which “trading, withdrawals and other account functions will be suspended.”
This decision from Binance came after some irregular transactions with the Syscoin’s SYS token were reported on its platform. Syscoin made an official announcement on its Twitter handle yesterday on Tuesday, July 3rd saying that it has encountered a potential issue with its system functioning and also asked exchanges to suspend the trading of its SYS token.
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
Syscoin, however, later confirmed that during their investigation, its team had discovered “odd trading behavior coupled with atypical blockchain activity.” It also assured that the Syscoin blockchain network is safe.
As a precaution we had requested exchanges halt $SYS deposit/withdrawal today after we observed odd trading behavior coupled with atypical blockchain activity. After investigating the #Syscoin blockchain is safe. We are asking exchanges to reopen. Detailed wiki post tomorrow. pic.twitter.com/NEypr531zi
— Syscoin (@syscoin) July 4, 2018
Although Syscoin has not furnished any further details regarding the transactions, but the issue seems to have been extrapolated resulting into some unusual transactions taking place on Binance’s SYS order books, that accounts for nearly 87% of the total trading volume as per the CoinMarketCap data.
The SYS-BTC data on Binance shows very erratic price fluctuations in the last 24 hours wherein one SYS token being valued at a high of equal to 96 BTC at one point in time. There is still no data available regarding how many orders of the SYS tokens have been executed at the unusual price.
While talking to CoinDesk, Syscoin’s co-founder Sebastien DiMichele said:
“My understanding is that yes, Syscoin was sold for 96 BTC per unit at one point today. We saw massive bot activity, our community let us know that they were having trouble with deposits at Binance.”
In its earlier post, Binance didn’t specify the reason for halting its trading service, however, in the follow-up, the exchange mentioned that the system maintenance was done due to some “irregular trading” being reported on its platform”. Binance wrote:
“Due to irregular trading on some APIs, Binance will remove all existing API keys as a precautionary security measure. All API users are requested to recreate their API keys.”
However, the exchange has also recently been in news for leading the $12 million funding round for a retail investment platform called Republic in an effort to introduce new security tokens on its platform. In addition to Binance, other players from the investment space like ZK Capital, Oyster Ventures, FBG Capital, Hazoor Capital, East Chain, Zhen Fund and others participated in the latest funding.
Republic CEO Kendrick Nguyen said that the company aims to become a major marketplace for private investing and also wants to enhance diverse participation in different types of entrepreneurship. Kendrick said that the “Crypto fever” has helped to kickstart the company’s mission and Republic is seeking global collaboration for solving the existing complexities of the crypto space while making every attempt to expand the cryptocurrency industry.