Binance, one of the worlds leading crypto exchange, will be undergoing a refresher as the exchange has announced that they would be upgrading their systems and would stop all operations for 8 hours.
Will we see a drop in prices as Binance would go offline
While Binance has announced that it will be performing a scheduled system upgrade starting on 12th March 2019 at 2:00 AM (UTC), a lot of people have already started anticipating of how the prices would react in the market when there would be no trades and volumes from one of the largest crypto exchange.
According to the official announcement, the exchange will be down for 8 hours and it will suspend deposits, withdrawals, and trading during this period. The announcement also stated that deposits that were not completed before the start of the upgrade will be processed after the upgrade is complete. The exchange has also said 8 hours is an approximate time and this could vary.
— Binance (@binance) March 11, 2019
Now a 2 am UTC time means it would be 11 am in Korea and Japan and 10 am in Hongkong which means the exchange would be down in most working day hours in eastern countries. This could impact the overall volumes coming on from this country and could keep the markets down for the day. A lot of users on Twitter also exclaimed the same
Watch out guys, a huge dip is coming!!!! 🤷🏼♂️🤷🏼♂️🤷🏼♂️🤷🏼♂️
— Charles Fuchs 🔰 (STACKIN) (@charlesfuchs) March 11, 2019
This is what it takes to push the price below the 200 MA
— Jonathan Habicht 🔥 (@HabichtJonathan) March 11, 2019
While a lot of people were considered about the reason for this system upgrade a twitter user reminded that the last upgrade that happened just before the BCH hard fork saw the BTC collapse from USD 6000 to USD 3000 levels
after Last binance maintenance btc hard crash from 6000 to 3000 lol
— sisut🤠 (@sisutcat) March 11, 2019
There could be an impact on Binance Coin (BNB) as well, that has been a superstar for the month, which may see some cooling as Binance is the exchange where the coin draws its maximum volumes from
Also, traders will have to keep an eye on Enjin Coin and THETA amongst others, that were also some top-performing coins on in Binance
While Binance is upgrading its systems for good, an 8-hour long upgrade is definitely keeping a lot of people thinking as to why is this happening. Is there a new addition or is there a vulnerability, the world will have to wait and watch? But it’s sure, the markets will definitely feel the dampness when one of the largest exchanges goes offline.
What do you think will be the impact on markets when Binance goes down for maintenance? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.