TLDR
- Binance CEO Richard Teng denies the platform’s involvement in the October 10 crypto market liquidation.
- Teng attributes the market crash to global economic pressures, including China’s rare earth metal controls and U.S. tariffs.
- The October 10 event led to $19 billion in liquidations across multiple exchanges, not just Binance.
- Binance provided support to users affected by the liquidation, unlike other platforms.
- Teng emphasizes that institutional interest in cryptocurrency remains strong despite the market downturn.
Binance Co-CEO Richard Teng has rejected claims that his exchange was responsible for the massive cryptocurrency market liquidation on October 10. He stated that the event was driven by global economic pressures, not internal issues at Binance. Teng emphasized that the market selloff affected exchanges across the board, both centralized and decentralized.
Geopolitical Factors Behind October 10 Market Crash
Teng attributed the crash to escalating geopolitical tensions and economic uncertainty, particularly over China’s rare earth metal controls and U.S. tariffs. “Binance did not cause the crypto market liquidation event,” Teng clarified. He pointed out that the market had been struggling with broader economic pressures, which had little to do with the platform’s operations.
On October 10, the cryptocurrency market saw a severe downturn, resulting in approximately $19 billion in liquidations. The timing of the wipeouts, around 9:00 p.m. ET, coincided with two separate glitches. These issues included a stablecoin briefly losing its peg and delays in asset transfers, but Teng made it clear that they were not connected to the broader market drop.
Binance Role and Response to the Liquidation Event
Despite some Binance users being affected by the selloff, Teng stressed that the company offered support to its users during the event. He pointed out that this response was in contrast to other platforms that did not provide such assistance. The company took steps to minimize the impact on those affected by the liquidations, aiming to restore user confidence.
Teng also compared the cryptocurrency crash to the downturn in traditional markets. He noted that while the U.S. equity market saw a $1.5 trillion drop in value, the crypto market’s $19 billion loss was relatively smaller. He reminded attendees that the liquidations hit exchanges across the crypto space, not just Binance.
Cryptocurrency Market’s Resilience and Long-Term Outlook
Teng expressed optimism about the future of the cryptocurrency industry. He acknowledged that retail interest in crypto has cooled compared to the previous year but stressed that institutional investors remain bullish. “The institutional deployment is still strong,” he said, highlighting that large-scale players continue to show confidence in the crypto market.
Despite the fluctuations in retail demand, Teng pointed to the resilience of the industry over the past several years. He emphasized that crypto prices often follow cyclical patterns and that the market will likely recover from the October 10 setback.
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