Extreme Ethereum volatility
On the GDAX platform (formerly Coinbase Exchange), a massive sale order (96,100 ETH) at market price drove the price of ethereum down as low as $ 13, then rising again just as quickly (we are talking here less of a second). Faced with this brutal move, Coinbase has even decided to suspend trading ETH / $ for several hours and withdrawals in ether. Faced with the accusations made by traders who have lost a lot of money (in these extreme cases of falling heads, positions are liquidated far below the expected stop losses, usually by a margin call), investigations are continuing to determine the causes of this event; But it seems that everything worked normally (the multi-million dollar order resulted in a stop loss cascade and margin calls).
Filling this order caused ETH prices to instantly slip 30% to $ 224 – which in turn caused 800 stop loss orders and margin liquidations, which further drove the price down, to as low at $ 0.10. (read full article)
Typically, someone placing a large sell order would liquidate their position over time to minimize the downward effect on price. Also, GDAX reminds users who are about to initiate large sell orders that it will cause slippage in the market, meaning this trader most likely did not care (or did not understand) that his trade would move the market.
However, they announced to use the funds to reimburse customers who suffered losses as a result of a margin call or stop loss order executed.
Coinbase will reimburse losses caused by the Ethereum price crash
Coinbase had announced tgat no trade will be reversed, meaning if you were “lucky” enough to buy Ethereum at a low price during the flash crash, that trade will be honored.
Following which, The Status team (open source messaging platform / mobile browser to interact with decentralized applications on the Ethereum network) has certainly followed the advice of Vitalik Buterin and proposed an original ICO model: a sale capped at 300,000 ETH, Consisting of a succession of hidden ceiling sales. If the ICO could last 14 days, it was finally closed in less than 24 hours. The fear of missing out and more generally the golden fever 2.0 once again pushed investors to rush on their wallets in order to send their ethers to the smart-contract address managing the sale before even the starting block is mined.
The record number of transactions broadcast on Ethereum in one day June 20 2017 was now 308,488.
Faced with this crazy increase in the number of transactions broadcast on the network during the crowdsale, some exchange platforms have decided to suspend payments in ethereum during the congestion period. A decision that has attracted strong criticism from users, many of whom are unable to connect with certain exchanges taken by assault. As the cryptocurrency market is very sensitive to ad effects, these problems have led to a very violent fall in ethereum prices due to the cascade of sales orders.
Ethereum prices still crashing.
Though Ethreum had recovered from $0.10 to $300 range (which surely it would have), the price correction is still continuing. Ethereum prices is facing a downward trend since the initial incident.
At the time of publishing this article, Ethereum price was trading around$253 on Poloniex. Ether prices are at it’s Two-Week low.
In Indian markets too, Ethereum price faced a huge crash. At press time, Ether price was around INR 16,200.
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