Dude! Did you see how ATOM and IOTX went to ZERO on Binance for a while while everywhere else they were still alive? 🤯 This wasn’t witchcraft; it was a perfect storm of panic, leverage, and a system that couldn't take the hit. Buckle up, because this is getting hot! 🔥
Last week the market exploded, not like a rocket, but like a grenade. On October 10, in hours, $850 billion in total crypto market value evaporated. A disaster we hadn't seen since the collapse of FTX. Our buddy Bitcoin (BTC) held the drop at 10-15%, but the altcoins... oh, my altcoins! 💔
Here comes the crazy part: Tokens like Cosmos (ATOM), 
IoTeX ($IOTX)
and Enjin ($ENJ) fell between 46% and 64% on other rival platforms. A hard drop, yes, but they still held value. But on Binance, they reached $0! 💀 Why only there?
The key is leverage and massive liquidations. When prices started to drop, almost $20 billion in positions were liquidated, 20 times more than in the 2020 crisis. Many traders were using borrowed money (leverage) on Binance. And what happens when the price goes against your bet? The exchange automatically sells your assets (your "collateral") to cover the debt.
This massive and automatic selling of altcoins that served as collateral generated brutal selling pressure. But the real drama came when the Binance system overloaded. The platform became slow, sell orders were not executed in time, and worse, some heavyweights (market makers like Wintermute) withdrew their funds upon seeing the chaos. 🏃💨
Result: Suddenly, there were no buy orders for those specific altcoins within Binance. Zero buyers! That's why the system had no choice but to show a price of ZERO for a few moments, even though they were still worth money elsewhere in the crypto world. It was a localized liquidity vacuum. 📉
Binance, for its part, has already apologized for the system failures and promised to compensate those who can prove they lost money directly due to technical failures (not due to the normal price drop).
This reminds us of the fragility of centralized exchanges when panic is total. It's not just about the price; it's whether the platform can withstand the hurricane. Be very careful with that leverage, folks. The question that remains is: If altcoins are the collateral, how strong is the chain when the main link breaks? 🤔$ATOM $IOTX $ENJ
