• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
      • Non Gamstop Casinos
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Casinos
  • Play Games
  • Play Casino Games
  • Best crypto casino
Breaking News: BREAKING: Terra Founder Do Kwon's Extradition To The US Approved
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
      • Non Gamstop Casinos
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Casinos
  • Play Games
  • Play Casino Games
  • Best crypto casino
Bitcoinist.com
No Result
View All Result
Breaking News: BREAKING: Terra Founder Do Kwon's Extradition To The US Approved
Bitcoin flash crashes $500 due to network velocity

GDAX To Credit Traders for Ethereum Flash Crash Losses

Matthew Neuteboom by Matthew Neuteboom
6 years ago
in Ethereum, Markets and Prices, News
0

GDAX has promised to credit traders for any losses they experienced during the exchange’s Ethereum “flash crash” on June 21, when prices temporarily dropped to as low as $0.10.


Last week, GDAX experienced an Ethereum “flash crash” when a multimillion dollar market sell was placed on their order book. Orders ranging from $317.81 to $224.48 were used to complete the trade, resulting in a recorded 29.4% price drop that quickly triggered a cascade of stop loss orders and margin calls.

The ensuing flood of sell orders temporarily drove down the price of ETH on GDAX to as low at $0.10. GDAX was forced to temporarily halt ETH trading in response to the price movement. The exchange’s ETH price has since recovered and is now trading for just over $300.

GDAX exchange - Ethereum flash crash

GDAX is now offering to credit traders who experienced a margin call or stop loss order executed as a result of the price drop. In a blog post released Friday, GDAX said it would use company funds to restore the value of customers’ ETH-USD accounts to their equivalent value at the moment prior to the rapid price movement.

A Leader Among All Exchange Platforms

GDAX was quick to assure traders that their “initial investigations show no indication of wrongdoing or account takeovers.” The crash was instead a result of a legitimate trade order which rapidly drove down the price, combined with a new margin trading system that the exchange had implemented earlier this year.

As such, vice president Adam White had previously stated that all trades would remain final in accordance with their trading rules:

Honoring properly executed orders is critical to maintaining the integrity of an exchange.

However, GDAX decided to credit traders’ losses as “an opportunity to demonstrate our long-term commitment to our customers and our belief in the future of this industry.” This means that all orders placed will remain valid, though traders will be able to recover any losses they incurred.

White states:

Our long-term ambition… is to be a leader among all exchange platforms and we are committed to serving as the most trusted provider to the world’s largest institutions and professional traders.

As such, GDAX has also stated that any buy orders executed during the price drop will be honored and will not be reversed. This means that any traders who bought ETH far below its market value will be able to keep any profits earned from its subsequent rebound.

Risky Business

GDAX reminded customers that “trading with advanced features like margin always carries inherent risk”. This is especially true regarding cryptocurrencies, which often experience rapid price swings occurring within a very short time span.

Although prices typically recover within days or even hours, such rapid price changes trigger stop-loss orders and margin calls that often lead to further losses. The resulting chain reaction creates a negative feedback loop that could theoretically drive the price to zero, as it actually did in this case.

Regulations are typically put in place to mitigate such risks in traditional securities trading. Decentralized cryptocurrencies are meant to remain unregulated by their very design, however, and therefore face these inherent dangers.

ETH price index Jun 21 2017

The flash crash also had a negative impact on ETH’s overall price, which dropped from around $340 to a low of $300 following the crash. Other exchanges such as Coinbase were also forced to halt trading as a result of the event.

Although ETH has been proving itself miraculously immune to the jaw-dropping corrections plaguing the market lately, GDAX’s flash crash highlights Ethereum’s own growing vulnerabilities. With the market’s bull run now slowly winding down, it remains to be seen how traders will be dealing with this fresh set of problems in the cryptocurrency community.

Did you lose money as a result of the flash crash? How much did you lose? Better yet, were you able to capitalize on the price drop? Let us know in the comments below.


Images courtesy of GDAX, CryptoCompare, AdobeStock

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Matthew Neuteboom

Matthew Neuteboom

Related Posts

AI

Europe Unveils World’s First AI Regulations – How This Intersects With The Crypto Industry

6 hours ago
Ethereum (ETH)

Ethereum’s Breakthrough Moment: Experts Predict Trillions In Inflow From Upcoming Spot ETFs

5 days ago
Ethereum

Ethereum Metaverse Game Immortalizes Rapper ‘The Notorious B.I.G.’

5 days ago
Ethereum

Why Did Ethereum Price Reach A New Yearly High?

6 days ago
Ethereum Whale

Ethereum’s Top 10 Whales Now Control 41 Million ETH, A New ATH

1 week ago
Ethereum

Ethereum Exodus: Validators Jump Ship – What’s Driving The Mass Departure?

1 week ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Top Casinos

Trust Dice
Trust Dice
Punt Casino
Punt Casino
mBit
mBit
Inmerion
Inmerion

Press Releases

  • If You Missed THORChain and Terra Classic, Here’s the...

    29 mins ago
  • 5 Must-Have Coins That Cover Crypto’s Market, from...

    6 hours ago
  • Solana (SOL) Pump Missed? Experts Indicate Retik Finance...

    9 hours ago
  • Shiba Inu (SHIB) burn rate nears ATH and Retik Finance...

    9 hours ago
  • Bitcoin (BTC) Price Prediction 2023-2030, analysts say...

    9 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
      • Non Gamstop Casinos
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Casinos
  • Play Games
  • Play Casino Games
  • Best crypto casino

© 2023 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.