‘No accident’ – Why OKX founder faults Binance for October’s crypto crash

Star Xu, founding father of crypto change OKX, has referred to as out Binance [BNB] for triggering the crash on the tenth of October.

In a submit on X (previously Twitter), Xu said, 

“No complexity. No accident. 10/10 was attributable to irresponsible advertising and marketing campaigns by sure firms.”

Supply: X/Star Xu

He added that the market construction modified after the crash. Notably, for the reason that deleveraging occasion, Bitcoin has by no means regained a optimistic correlation with conventional markets just like the S&P 500 or Nasdaq and has not matched their positive aspects. 

Xu singled out Ethena’s USDe’s depeg on Binance. He blasted the change for providing an APY of over 12% on the product, boosted by looped leverage, however did not implement key threat mitigation measures. 

He pleaded with Binance, because the trade chief, to embrace discussing ‘systematic threat’ throughout the sector with out viewing it as an assault. Xu concluded, 

“Crypto continues to be early. What we select to normalize right now will decide whether or not this trade earns lasting belief—or repeats the identical errors once more.”

Binance dismisses the claims

Nevertheless, Binance, the world’s largest crypto change, dismissed the claims of being the set off of the crash. The change clarified that the macro shock, the Donald Trump tariffs replace, was behind the risk-off transfer and subsequent $19 billion liquidation cascade. 

Though Binance acknowledged technical points with its buying and selling system in the course of the crash, it distanced itself from allegations that it was the first set off. 

AMBCrypto famous that the primary technical hitch occurred from 21:18 to 21:51 UTC on the tenth of October. This led to a short degradation of the asset switch system attributable to overload. The second glitch prompted USDe, BNSOL, and WBETH to depeg between 21:26 UTC and 22:15 UTC. 

For Chainlink’s Zach Rynes, nevertheless, the USDe depeg occurred after the liquidation cascade, suggesting that Binance performed little function within the flash crash. 

Supply: X/ Zach Rynes

Up to now, there was no unbiased, third-party evaluation of the crash to offer a balanced autopsy and assist forestall an identical incidence. 

Will BNB stay unfazed?

Nevertheless, the renewed FUD at Binance has intensified this week, pushing BNB decrease by 8% on the value charts. 

Final week, the altcoin misplaced almost as a lot. At press time, the BNB value slipped under $900. Surprisingly, BNB’s market dominance was not affected by the value decline; in actual fact, it elevated to 4% over the identical interval. 

This meant BNB was not being aggressively offered relative to different altcoins regardless of the FUD and broader weak sentiment.  

Supply: BNB value vs market share, TradingView 

Remaining Ideas

• OKX founder claimed that Binance was solely accountable for the October 10 crash attributable to accelerated liquidations originating on the change.
• However Binance dismissed these claims, with BNB holding higher and boasting of 4% market dominance regardless of the FUD.