Binance Wallet Experiences Downtime During Oversubscribed TGE Event

Why did Binance users see zero balances in their wallets during the record-breaking TGE event?

How has Binance responded to the user outrage during the downtime?

What impact did the oversubscription of the TGE event have on Binance's system?


Binance Wallet Experiences Downtime During Oversubscribed TGE Event
Image source: Unblock Media

Users faced a 30-minute outage on Binance Wallet during the Yield Basis Token Generation Event, raising concerns about financial losses and allegations of market manipulation.

Binance Wallet experienced a temporary outage on October 13, 2025, during the Yield Basis Token Generation Event (TGE), which was oversubscribed by 60 times within the first five minutes, Cryptopolitan reported. Lasting approximately 30 minutes, the incident left users unable to view their balances or process transactions. Binance attributed the downtime to network congestion caused by a surge in transaction volume on the BNB Smart Chain.

Frustration among users mounted as the outage coincided with a price drop of Binance Coin (BNB), leading to financial losses. Social media became an outlet for grievances, with users sharing screenshots of zero balances and expressing dissatisfaction over their inability to sell holdings before BNB’s price declined by over 3%. One investor reported losing more than $130 due to unsuccessful transactions. Questions were also raised regarding Binance's choice of BNB as the transaction medium for the TGE event, given its volatility in contrast to stablecoins such as USDT.

Binance founder Changpeng Zhao (CZ) addressed accusations of market manipulation through a statement on X (formerly Twitter). CZ stressed Binance’s commitment to transparency and clarified that BNB’s price movements are entirely market-driven, unlike projects that employ external market makers to stabilize token prices. Binance confirmed that the outage was solely due to temporary lag from network congestion.

In response to user grievances, Binance announced upcoming platform activities, including another Token Generation Event and two airdrops scheduled for the days following the outage.

As of October 13, 2025, 15:08 UTC, Binance Coin (BNB) is trading at $1,266.99, with a 0.21% change in 24-hour trading volume, according to Market Survey data.

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Article Info
Category
Policy
Published
2025-10-13 15:11
NFT ID
PENDING
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