Dragonfly and Binance Address October 11 Market Crash Controversy

On January 31, Dragonfly’s Haseeb criticized OKX Star’s claims blaming Binance for the October 11 crash, supported by Binance’s founder CZ on social media.

Haseeb emphasizes the need to understand the crash’s complexity and highlights Bitcoin’s price movements preceding Binance-specific anomalies, urging patience for market recovery.

Dragonfly and Binance Debunk Crash Allegations

Haseeb Qureshi analyzed the October 11 crash, citing that Bitcoin’s price had bottomed approximately 30 minutes before the USDe anomaly on Binance. This analysis challenged claims by OKX Star that implicated Binance in the crash. The observed price deviation was specific to Binance, as noted by Haseeb, not affecting other platforms. He asserted that attributing a single culprit oversimplifies the situation. Qureshi stated, “Bitcoin’s price bottomed ~30 minutes before the USDe anomaly on Binance, reversing causality; USDe deviation was Binance-specific and did not spread, unlike Terra’s global shock; no ‘single culprit.’ The market needs time to restore liquidity/confidence.”

Immediate implications include reaffirming Binance’s position in the industry as both Changpeng Zhao and Haseeb dismissed the allegations. Emphasizing liquidity restoration, Haseeb stated that while the market experienced a severe blow, it was not irreparably damaged.

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Market reactions and statements followed the release of these analyses. Binance’s CZ retweeted Haseeb’s assessment, pointing out the factual basis of the analysis. He noted Dragonfly’s previous investment ties with OKX, suggesting bias in OKX Star’s claims. He also expressed his intent to focus further on Binance’s operations instead of engaging with the allegations.

Bitcoin Price Dynamics and Historical Insights

Did you know? The October 11 market crash involved a deviation observed only on Binance, contrasting events like Terra’s that had wider global impacts. This underlines the complexity and singular nature of market anomalies.

Bitcoin, currently priced at $79,355.37 with a market cap of $1.59 trillion, demonstrates fluctuating trends. The cryptocurrency saw a 3.89% drop over 24 hours and has declined 27.97% in 90 days. Despite such volatility, its market dominance stands at 58.75%, as per CoinMarketCap.

According to insights from the Coincu research team, the recent market anomaly highlights the importance of diversification strategies and robust exchange resilience in maintaining investor confidence. Historical analyses suggest such incidents prompt temporary setbacks rather than long-term market damage. The emphasis remains on restoring market stability.