Binance, one of the most popular global cryptocurrency exchanges is currently having some technical difficulty with their two-factor authentication system (specifically via SMS). This means that a ton of people are now locked out of their accounts, at a time when just about every cryptocurrency is down. People are going nuts on Twitter but so far Binance has been radio silent about the bug.
Of course, given that the #1 mantra in the cryptocurrency world is HODL, it seems Binance has inadvertently created the next generation of HODLers for the time being. Given the incredible volume that exchanges like CoinBase, Binance, Bitrex and others have seen it’s not too surprising that there’s a technical glitch.
Binance saw so many new user registrations in December that they had to temporarily disable new registrations. The service now boats over five million users and once they open registrations back up again I’m guessing they’ll be at ten million in no time. Given that I already have an account on Binance I also haven’t checked so maybe they switched it back on and that’s somehow related to the issue they’re seeing now, who knows?
This is also why so many people are staying out of the crypto game for now. Companies like Fidelity and Charles Schwab have ironclad policies that protect your money and make sure you can easily access and trade with your account. The cryptocurrency world is still the wild west and many speculators (notice I didn’t say investors? I thought you’d like that) are taking on multiple layers of risk with both incredible market volatility and buggy exchanges with questionable security measures.
(Source – CoinMarketCap.com)
As you can see from the chart above just about every cryptocurrency is down today which likely means there’s a lot of people trying to login to their Binance account, and likely for different reasons. As we’ve seen over the last few months, at times like this those who put their life savings into crypto begin panic selling, and those who have been in it for a while now start buying…but for now, both sides are going to just have to sit it out until Binance can get this fixed.
I’ll be honest in saying that I am a bit disappointed that Binance hasn’t mentioned anything about this bug on their Twitter account or blog. Given that a huge portion of their user base (likely millions of people) can’t login, this seems like a pretty big deal. Still, like I said above, this is still the wild west and it will be for the foreseeable future, and in the wild west…things like this do happen.