IoTeX to launch token buybacks, reward programs in Binance price glitch recovery plan

IoTeX, the blockchain platform focused on real-world AI applications, has announced in a post on X that price charts on Binance are being corrected after IOTX appeared to crash to zero on the centralized exchange during the October 10 market meltdown. 

At the peak of the market turbulence, IOTX briefly showed that it was trading at “0.0000” on the world’s largest cryptocurrency exchange, which was later attributed to a display and system glitch rather than genuine market activity.

Binance confirmed that the wonky price action was not the result of actual trades but a combination of technical display issues and old limit orders triggered by thin liquidity conditions. The affected price charts have since been corrected, and impacted users have been compensated.

IoTeX shared next steps to improve sentiment and rebuild confidence among investors after it called the price correction the first step towards a resolution. It added, “We stand firmly with every community member affected by the recent market volatility. Together with our investors, partners, and community, IoTeX will emerge stronger, more united, and more resilient than ever.”

Binance clarifies ‘zero price’ glitch amid market chaos

In a detailed statement released after the event, Binance sought to dispel speculation surrounding its platform’s role in the October 10 crash, which was triggered by President Donald Trump’s announcement of new tariffs on Chinese imports. The announcement sparked a chain of liquidations that rose to a record $19 billion within 24 hours.

The exchange cited three primary causes behind the abnormal price readings on pairs like IOTX/USDT, historical limit orders dating back to as early as 2019 being triggered under one-sided liquidity conditions, momentary gaps in buy orders, and a “UI display issue” following a reduction in decimal precision for minimum price movements.

The latter caused prices to show as zero in the user interface even though actual trades did not occur at that level.

To address user concerns, Binance said it “will optimize UI display and apply UI display corrections for related abnormal prices.” It also said it has covered the losses of those impacted by depegs and liquidations linked to assets such as USDe, BNSOL, and WBETH.

In total, the exchange said it distributed around $283 million to affected customers, as reported by Cryptoplitan earlier today.

IoTeX’s roadmap for rebuilding confidence

While Binance’s review cleared up confusion over the technical causes of the glitch, the IoTeX team announced that it would coordinate with exchanges and market makers to boost liquidity, ensuring that the IOTX order book can withstand future volatility.

The plan includes foundation-led token buybacks and new community reward programs designed to incentivize long-term supporters.

While Binance’s clarification and compensation plan helped calm nerves, the incident highlighted how a glitch, whether in code, UI, or liquidity depth, can erode trust and cause losses for users.

Platforms affected by the glitch also engaged their users, giving them updates; among them was Ethena Labs, the platform behind the USDe stablecoin that briefly depegged on Binance. In a long thread on X, the founder gave a detailed breakdown of the events, what happened, and how to prevent future occurrences.

IoTeX is also taking a proactive stance, as seen in its recovery plan, and this is seen by market observers as the platform positioning itself as a resilient player in a market where confidence is often fleeting.