Altcoins on Binance Fall to Zero, What’s Really Happening in the Crypto Market?

Jakarta, Pintu News – The cryptocurrency market has been rocked by another big storm. Last Friday (October 10, 2025), several major altcoins on the Binance exchange such as Cosmos (ATOM), IoTeX (IOTX), and Enjin (ENJ) suddenly plummeted to almost zero rupiah, although on other crypto exchanges the value is still normal.

This rare occurrence has the crypto community in an uproar and raises a big question: is this a system error, a mass liquidation action, or is there a more serious issue behind it?

Worst Crash Since FTX: Market Capitalization Lost Rp14,087 Trillion

In just a few hours, the crypto market lost around $850 billion, making it the most drastic fall since the FTX crash in 2022. Bitcoin (BTC), which was trading at around Rp2.05 billion ($124,000), plunged to the level of Rp1.74 billion ($105,000)-a drop of around 10-15%. However, altcoins fared much worse.

Some tokens such as Cosmos (ATOM), IoTeX (IOTX), and Enjin (ENJ) have even touched zero on Binance, while on other exchanges such as Coinbase and Kraken they are still holding their value.

For example, ATOM is only down about 53%, IOTX is down 46%, and ENJ has slumped 64.5%-none of which are exactly zero like on Binance. These extreme differences have led investors to suspect technical glitches or system overloads on the world’s largest exchange.

The phenomenon sparked widespread panic, with millions of users complaining on social media that their sell orders were executed at absurd prices. Analysts called it the “biggest flash crash in modern altcoin history.”

IDR331 Trillion Liquidation in 24 Hours: The Domino Effect of Leverage

Data from CoinGlass shows that around $20 billion or Rp331 trillion worth of crypto positions were liquidated in 24 hours between October 9-10. This is 20 times larger than the mass liquidation during the COVID-19 pandemic in 2020. More than 1.6 million traders lost their entire positions due to the domino effect of leveraged trading on Binance.

Read also: After the Massive Crash, How is the Crypto Market Today (10/13)?

Leverage allows traders to borrow additional capital to increase potential profits-but also increases the risk of loss. When prices plummet, Binance’s automated system immediately sells collateralized assets to cover the losses. As a result, selling pressure increases sharply, prices fall further, and the system enters a negative spiral.

According to Arthur Hayes, founder of BitMEX, the condition is exacerbated by the cross-margin liquidation mechanism, where a single failed position can drag down a user’s entire portfolio. “Big exchanges like Binance are selling large amounts of collateral simultaneously,” he said on platform X (Twitter).

As selling pressure mounted, Binance servers were also reportedly overloaded. Many users complained of frozen accounts, delayed orders, and stop-losses that failed to execute, exacerbating the chaos.

Market Makers Leave and Order Books Empty: Zero Price Becomes Reality

In addition to liquidation pressure, some analysts believe that large market makers such as Wintermute had withdrawn liquidity from Binance due to volatility spikes and system delays. As a result, buy orders momentarily disappeared, and the system automatically displayed “zero” prices on some tokens as there were no active buyers in the market.

This situation is very similar to the Ethereum (ETH) flash crash in 2017 on the GDAX exchange (now Coinbase Pro), where the ETH price plummeted to Rp1,657 ($0.10) in just seconds due to a similar effect. Afterwards, the price recovered, but many traders had already lost their balance due to automatic liquidation.

A similar incident on Binance showed how fragile the crypto trading ecosystem can be when transaction volumes spike to extremes. Although tokens like ATOM, IOTX, and ENJ returned to normal prices, the reputation of the world’s largest exchange was shaken.

Binance Apologizes and Promises Compensation

In response to this incident, Yi He, co-founder and Chief Customer Service Officer of Binance, issued an official apology. He acknowledged that “some users experienced transaction issues due to extreme volatility and system traffic spikes.”

Read also: 1 Pi Network (PI) Price in Indonesia Today (10/13/25)

Binance CEO Richard Teng also added, “We apologize to all affected users. We don’t make excuses-we listen, learn, and commit to improving our systems.” Binance confirmed that it will compensate users who suffered real losses due to the system failure, but emphasized that losses due to market price fluctuations are not included in the compensation category.

Binance also promised to conduct a thorough technical audit and strengthen the mass liquidation prevention system to prevent similar incidents from happening again.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Cointelegraph. Why did some altcoins on Binance crash to zero?. Accessed October 13, 2025.
• Featured Image: Generated by Ai