Summary
- Binance reportedly paid compensation to affected users in USDC and BNB following the largest-ever forced liquidation incident.
- Investors generally evaluated the compensation program positively, but controversy arose that the use of BNB worked to Binance's advantage.
- Although the compensation amount was small compared to actual losses, public dissatisfaction largely decreased; however, without fundamental improvements to platform outages, there will be limits to long-term trust recovery.
On the 15th (local time), according to BeInCrypto, a media outlet specializing in virtual assets (cryptocurrencies), the global exchange Binance's forced-liquidation compensation program is said to have eased complaints about platform outages, while some have raised controversy over the 'use of BNB'.
Earlier, after the largest-ever forced-liquidation incident that occurred on the 11th, Binance reportedly paid compensation to affected users in USDC and Binance Coin (BNB).
The media said, "Investors generally view this measure positively, but the use of its own token, BNB, in the compensation could work to Binance's advantage," and "although the size of the compensation paid was smaller than the actual losses, public dissatisfaction with the platform has almost disappeared."
It added, "From the perspective of individual investors, short-term compensation can be helpful, but if fundamental improvements to platform outages or the liquidation system are not made, there will be limits to restoring trust in the long term."
JH Kim
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