Ether or Ethereum prices crashed from $319 to 10 cents in seconds on one exchange after ‘multimillion dollar’ trade.
Ethereum suffered the huge crash on GDAX exchange on Wednesday. Many ethereum traders lost large sum of money
This huge price drop is blamed on “Multimillion dollar market sell order”.
Ethereum had been trading as high as $352 on Wednesday.
Adam White, the vice president of GDAX which is run by U.S. firm Coinbase, posted on the exchange’s blog, outlining what took place at around 12:30 p.m. PT on Wednesday. According to White, the multimillion dollar market sell order resulted in a number of orders being filled from $317.81 to $224.48.As the price continued to fall, another 800 stop loss orders and margin funding liquidations caused Ethereum to trade as low as 10 cents.
A stop loss order is a order which gets automatically executed, once the prices hits the particular bid price.
“Our initial investigations show no indication of wrongdoing or account takeovers. We understand this event can be frustrating for our customers. Our matching engine operated as intended throughout this event and trading with advanced features like margin always carries inherent risk,” White mentioned in the blog post.
“We are continuing to conduct a thorough investigation and will keep customers updated with any resulting actions.”
White also pointed out that these trades are final and shall not be reversed.
The exchange temporarily halted trading of Ethereum on Wednesday before restoring the system shortly after.
Various cryptocurrency traders critizised GDAX on social media channels and alleged the happening of some kind of illegal activities within the Exchange.
GDAX rejected the allegation.
While some users lost their wealth, there was a user which made a million in this price crash of Ethereum.
On a trading forum StockTwits, a user name John DeMasie posted a screenshot of trade history around the time of the flash crash. There was a buy order for around 3800 Ethereums priced at 10 Cents on GDAX Exchange.
So this user will now pay $380 for 3800 Ethereum. As the price level has restored, the user has now become a millionaire overnight. How authentic is the screenshot is unknown.
On Wednesday , Ethereum network also got clogged due to rise in Ethereum payments.
“http://kryptomoney.com/civic-ico/”>Civic Crowdsale, was going on perfectly. But it had to hault for around 3 Hours due to clogging of Ethereum payment network. As Civic ICO was accepting payments both in Ethereum and Bitcoin, it later requested the interested investors to pay via Bitcoins and not in Ethereum.
Civic ICO Started on 21 June. Out of it’s target of $11 Million, it already collected a whooping amount of $9 million on it’s first day.
Civic ICO will resume on 22 June at 12 PM PT. According to Indian Time Zone, it will be resumed around midnight 12 AM 23rd June.
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