Binance and their Futures exchange has come under fire due to the site making early liquidations on customers leaving them in the lurch and quibbling over the rule stated.
Binance and their CEO, Changpeng Zhao’s Twitter had an angry and exasperated user firing tweets at them on November 18th. They claimed Binance had failed to notify its customers of crucial rule changes.
The company appears to have different rules for each section of their exchange, with the futures margin level being lower than the margins.This smallprint and possible lack of signpost telling user about this important change was the reason for the tweets.
@Klowert1 tweeted to Binance asking for help in clarifying the rules on margin trading liquidation rules after facing an early liquidation.
The twitter user even showed Binance’s response which explained the situation. @Klower1 said that there was a lack of information telling users of this change. He signed off the tweet by saying:
“You cannot have internal rules that you do not tell your customers!!!”
The Twitter user expanded further in their argument by pointing out that Binance does not have any mention of a stop policy, unlike Huobi and other major exchanges. The confusion has clearly left this Binance futures user very angry.
This is not the first letter of complaint that Binance has faced recently. The company’s Binance JEX had a faulty K Line on their Bitcoin perpetual swap platform. For the company as a whole it is not looking that great either.
Binance was removed from Weibo due to the exchange’s links to the Hong Kong protests. This must not sit well with Changpeng Zhao, their founder who is from China has many links to the nation.
To compound Binance misery even further, a recent report found the exchange to be less trustworthy and relied upon in terms of security, This assessment no doubt came following their huge hack in May of this year and a KYC leak.
The previous events mentioned among others resulted in Binance falling out of the top ten in terms of trusted exchanges. CryptoCompare released their second quarterly review of exchanges and trust, with OkEx replacing Binance’s position in the top ten.
Complaints like these from Twitter users will hardly begin to rebuild the trust that Binance has with its customers. Small incidents like these do build up, especially when partnered with claims of wash trading that have surfaced around Binance more recently.