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Ethereum Drop To 10 Cents

Ethereum Dives To 10 Cent Prices As Network Panics

Ethereum Dives To 10 Cent Prices As Network Panics

Ethereum Dives To 10 Cent Prices As Network Panics Multiple factors have contributed to a serious bout of Ethereum volatility, with coins selling for as little as 10 cents. Ethereum (ETH) experienced a wave of intense volatility on Tuesday, which caused it to trade as low as $0.10 per coin. This is due to a combination of factors, including a major sell order and two ICOs, which in turn contributed to network congestion and technical problems at exchanges. Most severely hit was Coinbases GDAX exchange, which saw a 96,100 ETH sell order. This resulted in orders being filled from $317.81 to $224.48, translating into a book slippage of 29.4%, explained a subsequent blog post by Ice President Adam White. This slippage started a cascade of approximately 800 stop-loss orders and margin funding liquidations, causing ETH to temporarily trade as low as $0.10. Signs of strain surfaced elsewhere, with charts showing a dramatic but short-lived dive in ETH to around $13 at GDAX widely circulated. Tuesday also saw the highly-popular initial round of Vinny Linghams Civic ICO. Soon after it began, Lingham announced the sale had been paused due to the Ethereum network being clogged. A concurrent ICO from Status meanwhile was criticized by investors and onlookers for its inadequate structure, which contributed to network instability. The badly designed Status ICO clogged up the network yesterday with a huge number of high gas fee transactions, most of which are failing but still filling up the blocks and preventing normal tx's from getting in, u/emansipater commented on Reddit. ETH since recovered to trade around $335, down only modest amount on the same time yesterday. Continue reading >>

The 45-millisecond Ether Flash Crash Prompts Safeguard Effort

The 45-millisecond Ether Flash Crash Prompts Safeguard Effort

The 45-Millisecond Ether Flash Crash Prompts Safeguard Effort Coinbases GDAX exchange is considering using circuit breakers GDAX might also introduce incentives to lure market makers Last weeks flash crash in the ethereum digital currency prompted the venue where it happened to consider safeguards used in other markets such as stocks. Circuit breakers that would pause trading to prevent accidents from spiraling out of control and a system of incentives to lure market makers whod help keep prices from dropping too far are among the options under consideration, according to Adam White, general manager of Coinbase has consulted with the New York Stock Exchange and other experts on how to prevent flash crashes, White said, though he declined to give details. NYSE Group The crash at 3:30 p.m. New York time on June 21 drove the currency down to 10 cents from $317.81. The cause, White said, was a single $12.5 million trade -- one of the biggest ever -- placed by a customer as a market order, or a request to sell immediately. That pushed ethereum to $224.48, but the pain didnt end there. The decline triggered sell orders from traders whod requested to bail on the currency if prices fell to certain levels, and prompted GDAX to liquidate some margin trades. It all happened in just 45 milliseconds, White said in an interview. Thats when computer algorithms started buying, driving prices back up to $300 within 10 seconds, he added. This was not long, sustained, panicked selling, White said. It was a very rapid, cascading event followed by aware and intelligent programmatic traders buying. Ether fell 4.8 percent to $288.50 on Friday afternoon, according to data compiled by Coindesk.com. Preventing the next digital currency flash crash might depend on learning lessons from the stock Continue reading >>

Video Of Gdax During Eth Crash To 10 Cents : Ethtrader

Video Of Gdax During Eth Crash To 10 Cents : Ethtrader

Welcome to /r/EthTrader , a 100% community driven sub. Here you can discuss Ethereum news, memes, investing, trading, miscellaneous market-related subjects and other relevant technology. New to Ethereum? Read our FAQ .For the discussion of tech and application development using Ethereum, go to the official sub at /r/ethereum . Read our rules before posting. If you wish to have your subreddit or website listed in our sidebar, please review our sidebar listing policy . User flairs or tokens in the ticker are not an endorsement. Please use due diligence when choosing an investment. Welcome to /r/EthTrader | Foundation Tip Jar | Rules | Policy | Public Mod Logs | News Timeline | Education | Comments You can correct innacurate link-flair assignments by typing "[AutoMod]" along with the flair name in a top-level comment, e.g. [AutoMod] DAPP-NEWS. Requires 100 comment karma and 1-month account age. If this feature doesn't work, please message the modmail . Continue reading >>

Buyers Beware: Lessons From The Ethereum 'flash Crash'

Buyers Beware: Lessons From The Ethereum 'flash Crash'

Buyers beware: Lessons from the ethereum 'flash crash' The price of the digital currency ethereum briefly dropped from more than $300 to 10 cents on Wednesday on one exchange. The "flash crash" shows how the young infrastructure isn't yet able to handle large trades. Big Wall Street firms have increased their interest in digital currencies and their underlying blockchain technology. One event this week shows why digital currency markets still have a long way to go before they're safe enough for large-scale trading. On Wednesday afternoon, a "multimillion dollar" sell order was placed on the GDAX exchange for the digital currency ethereum. That triggered a chain of events that resulted in ethereum briefly plunging to 10 cents on the exchange, according to a blog post by the exchange's vice president, Adam White. Stop-loss orders baked-in directives to sell an asset once it falls to a certain price contributed to the temporary drop. The same issue contributed to the May 2010 flash crash that sent the Dow Jones industrial average plunging nearly 1,000 points only to recover minutes later. Since then, the U.S. Securities and Exchange Commission approved a "limit up and limit down" mechanism to halt stocks after sudden moves of more than 5 percent. "What we've been doing in the stock market to prevent flash crashes, they're nowhere near that in the cryptocurrency market," said Joe Saluzzi, co-founder of Themis Trading and co-author of "Broken Markets," a 2012 book criticizing the way regulators have allowed high-frequency traders to take unfair advantage of markets. "You have a big market that has no confidence now," Saluzzi said. "How are you going to attract sizeable investors?" Wall Street has paid increasing attention to digital currencies like bitcoin and ethereum, tha Continue reading >>

Ethereum Crashed From $319 To 10c On Gdax After Multimillion Dollar Trade | Hacker News

Ethereum Crashed From $319 To 10c On Gdax After Multimillion Dollar Trade | Hacker News

Wait, so basically I could create a buy order for $2, leave it sitting there, and wait until there is another crash [1]? If there is no crash, then nothing happens. For good measure, do it for every currency on the exchange. Is there any risk or downside to this? Seems like buying a lottery ticket for free. [1] ... or someboy fat-fingers an order - although I think in that case I think still the higher bidders would win, wouldn't they? A number of people with USD on deposit at Mt. Gox, who correctly understood Bitcoin's price to be unsustainably high and were waiting for the correction, are now 3+ years into waiting for a Japanese bankruptcy court to pay out their claims. They are, in the Bitcoin economy, the lucky ones -- the more common thing which happens when exchanges fail (which happens in 20%+ of exchange-years) is for all money (and things of more dubious value) to be lost. This is different than in more traditional markets, where custody of assets is distinct from being an exchange (you don't wire money to the NYSE to trade there), custodians/brokers are regulated, individual accountholders are insured, and you generally don't have to have $2000 cash on deposit and locked up to keep an order for 1000 of Google at $2 on the books. I feel like I have to say that professionals very much do have orders far outside the usual trading ranges for various things in the expectation that a fill against that order usually represents a quickly profitable mistake by a counterparty. A major portion of the reason that this is something professionals do and amateurs largely don't is because there do exist cases where orders get filled far away from the market and one's counterparty praises all the spirits of capitalism that someone else was being inattentive to the fundamental Continue reading >>

Ethereum Price Crashed From $319 To 10 Cents On 21 June 2017

Ethereum Price Crashed From $319 To 10 Cents On 21 June 2017

Ethereum prices crashed from $319 to 10 Cents Why Ethereum prices dropped on 21 June 2017? 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 exchanges 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. Some loosing money, some making Continue reading >>

Gdax Suspends Eth Trading After Flash Crash To 10 Cents

Gdax Suspends Eth Trading After Flash Crash To 10 Cents

GDAX Suspends ETH Trading After Flash Crash to 10 Cents Also read: Petition Asks Jeff Bezos, Amazon to Accept Bitcoin and Litecoin [Update 21 June 2017 8:30PM EST]: GDAX has resumed trading on ETH-USD, though margin funding there is still disabled. Screenshots from the order book show ETH-USD trades actually filled at $0.10 and $1.00, as well as several other ridiculously low prices. WTF! Even 10 cents ETH/USD got filled. Yea, you read it right, 0.1USD/ETH filled. The crash happened between 3:30PM and 3:45PM (EST). Prices rebounded before GDAX suspended trading but only to around $300. Just a day earlier, the ETH price had been as high as $380 on the exchange . The price appeared to bounce back to around $300 and GDAXs Trade History shows orders filled around that price before trading was suspended. However an updated chart stops at the crash, with no further data. Other exchanges, like BTC-e, did not suspend trading but have temporarily disabled ETH withdrawals. Trading is disabled for ETH-USD while we investigate this issue. We are also investigating reports of sign in issues on GDAX.com. Investigating Were currently investigating sign in issues on GDAX.com, as well as the cause of rapid price movement on the ETH-USD order book. We have disabled further margin funding for the time being. The Coinbase-owned exchange has not revealed any more details about the issue. Bitsonline will continue to monitor the story. On social media, some speculated whether the crash was due to a recent ICO cashing out: Wondering if that flash crash was an ICO converting proceeds. If so, that's a painfully expensive mistake. Spencer Bogart (@bitcom21) June 21, 2017 However there is no evidence of this at present, and it would seem like a counter-productive move for any company trying to ra Continue reading >>

Coinbase Under Investigation For Ethereum Flash Crash

Coinbase Under Investigation For Ethereum Flash Crash

Coinbase Under Investigation for Ethereum Flash Crash The Commodity Futures Trading Commission is investigating Coinbase for an Ethereum flash crash that occurred in June. During the crash, the ETH exchange rate plummeted down in an instant, but quickly regained its price. According to Bloomberg , Ethereum dropped from trading at$317.81, down to 10 cents in a split second. However, its recovery was also swift. It regained a $300 price point in mere seconds. Also read: Switzerlands FINMA Eyes Crypto Valley The Bloomberg article said, The Commodity Futures Trading Commission has requested information from Coinbase Inc. about a June 21 incident on its GDAX platform in which the Ether digital token suffered a precipitous drop, falling to 10 cents from $317.81 in milliseconds before quickly recovering, said two people familiar with the matter. Could Margin Trading have caused the Plunge? The CFTC is concerned that leveraged or margin trading may have precipitated the flash crash. Margin trading allows users to borrow money to trade. This is called trading on margin or leveraged trading. Among the issues the agency is focused on is what role leverage might have played in the plunge, asCoinbaseallowed traders to use borrowed money to make bigger wagers than would have otherwise been possible, said the people, who asked not to be named because the review isnt public. After the flash crash, Coinbase discontinued their margin trading service. Their actions quickly piqued regulatory interest and scrutiny. The Cryptocurrency Wild West and Coinbase Cooperation Regulators are now scrutinizing cryptocurrency exchanges even more. It comes as no surprise that the CFTC is thoroughly investigating Coinbase because the CFTC wants to control the wild west nature of the digital currency eco Continue reading >>

How Ethereum Crashed From $319 To 10 Cents In Seconds

How Ethereum Crashed From $319 To 10 Cents In Seconds

How Ethereum Crashed from $319 to 10 Cents in Seconds The price of ethereum crashed as low as 10 cents from around $319 in about a second on the GDAX cryptocurrency exchange on Wednesday, a move that is being blamed on a "multimillion dollar market sell" order. Ethereum is an alternative digital currency to bitcoin and had been trading as high as $352 on Wednesday. It has since rebounded from its flash-crash lows to trade to about $325 on the GDAX exchange. According to industry and price tracking website Coinmarketcap, which takes into account the price on several exchanges, ethereum was trading around $338. 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. On Wednesday, the price of ether -- the cryptocurrency of the Ethereum blockchain -- on the GDAX exchange briefly crashed from $328 to $0.10. The story seems to be thatthere was a big market sell order that blew througha lot of the buy orders on the book, pushing the price down. This triggered forced selling by margin accounts, blowing through the rest of the buy orders until the price hit 10 cents."We understand this event can be frustrating for our customers," said GDAX , but everything is fine: "Our matching engine operated as intended throughout this event and trading with advanced features like margin always carries inherent risk." Here's Matt Levine's detective work on the topic The basic appeal of the cryptocurrency revolution, to people like me who are not making any money off ofit, is thatit is fun to watch people rediscover all of the lessons of financial eco Continue reading >>

Ethereum Price Crashed From $319 To 10 Cents On Gdax After Huge Trade

Ethereum Price Crashed From $319 To 10 Cents On Gdax After Huge Trade

The price of ethereum crashed as low as 10 cents from around $319 in about a second on the GDAX cryptocurrency exchange on Wednesday, a move that is being blamed on a "multimillion dollar market sell" order. Ethereum is an alternative digital currency to bitcoin and had been trading as high as $352 on Wednesday. It has since rebounded from its flash-crash lows to trade to about $325 on the GDAX exchange. According to industry and price tracking website Coinmarketcap, which takes into account the price on several exchanges, ethereum was trading around $338. 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 trade that is executed automatically once a security in this case ethereum hits a particular price. Margin funding is essentially trading with borrowed funds. Liquidation is when these positions are closed automatically in order to prevent further losses. The knock-on selling effect caused the flash crash on GDAX . The chart below is a screenshot of the GDAX price showing the high and low price. Many on social media criticized GDAX and alleged there was some sort of illegal activity taking place. GDAX denied this. "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 margi Continue reading >>

Ethereum's Flash Crash, Explained - Business Insider

Ethereum's Flash Crash, Explained - Business Insider

The digital currency Ethereum experienced a " flash crash " on Wednesday, with the price falling from about $296 to a low of 10 cents in a matter of minutes. Almost as quickly as it collapsed, the price bounced back, and at close to 11.25 a.m. BST (6.25 a.m. ET) on Thursday, Ethereum was trading at $342.02, according to CoinDesk . The price crash appears to stem from GDAX, one of the leading Ethereum exchanges. Adam White, the vice president of GDAX, wrote in a blog post on the company's site that an unusually large sell order caused the crash. A "multimillion-dollar" sell order caused the initial price dip, but the real problem was the domino effect afterward. The initial fall triggered 800 stop losses automatic sell orders that are placed once an asset hits a certain price and margin funding liquidations, which is where investors trading with borrowed money had their positions closed to stop them losing any more money. Essentially, the large sell order created a flood of other sellers. With not enough buyers to mop up demand, the price collapsed as programmes executing the trades tried to find a price at which buyers would step in and fill the orders. Here is how the flash crash looked as it happened: Charles Hayter, the CEO and founder of the digital-currency information provider CryptoCompare, told Business Insider in an email: "Thin order books and large trades are the usual culprits in these scenarios. Liquidity that isn't unified but spread across multiple isolated pools can be vulnerable to large sell orders that drop prices rapidly. This can then trigger panic in the market. "Most likely someone with little experience was trying to exit a position and ate through all the liquidity although it could have been a fund manipulating the market by shorting Ethereum Continue reading >>

Coinbase Is Reimbursing Losses Caused By The Ethereum Flash Crash

Coinbase Is Reimbursing Losses Caused By The Ethereum Flash Crash

Coinbase is reimbursing losses caused by the Ethereum flash crash Relevnt launches a publisher-centric news app Earlier this week, GDAX, the digital currency exchange run by Coinbase, experienced a flash crash in its USD Ethereum market. Within seconds the price of ETH crashed from ~$320 to as low as $0.10. While the price recovered quickly, the rapid price movement caused many traders to experience margin calls or stop loss orders, resulting in potentially severe losses. While many initially thought the flash crash was the result of nefarious work, GDAX eventually confirmed that there was no indication of wrongdoing or account takeover. Instead, the flash crash was the result of someone placing a multi-million-dollar sell order at market price, meaning ETH would change hands at whatever price bidders were currently offering until the entire order was filled no matter how much lower the price was than the current price of ETH. 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. 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 didnt care (or didnt understand) that his trade would move the market. For anyone not familiar with trading and exchanges, a stop loss order is an order to sell stock (or cryptocurrency) when the price drops to a certain level. Its basically used as a way to cut your losses. Additionally, a margin funding liquidation is when you borrow funds to go long and bet that an asset will rise in price Continue reading >>

What Caused The Ethereum Flash Crash?

What Caused The Ethereum Flash Crash?

No indication of wrongdoing, exchange says It was a rough day for traders of the worlds second-largest cryptocurrency on Wednesday as ethereum plunged from more than $317 to briefly trade as low as 10 cents in a flash cash on the GDAX exchange before rebounding. In a post, GDAX Vice President Adam White said a multimillion-dollar market sell order was placed on GDAXs ETH-USD [ethereum-U.S. dollar] order book, which resulted in orders being filled from $317.81 to $224.48for a slippage of 29.4%. That, in turn, began a cascade of around 800 stop-loss orders and margin-funding liquidations, which sent the price temporarily as low as a dime, he explained. A stop-loss order requires the security to be sold when the price hits a certain threshold. Margin-funding refers to trading with borrowed money. Liquidations can occur when margin-funded positions are closed out automatically to prevent further losses. The combination of stop-loss orders and margin liquidations contributed to the sharp downward spiral, which was followed by a sharp rebound. White said the GDAX decided to temporarily halt trading of ETH-USD in response to the price movement, then restored trading in accordance with the exchanges downtime process once it was confirmed that all systems were operating correctly. White said the exchanges initial investigations showed no indication of wrongdoing or account takeovers but acknowledged that such an event can be frustrating for our customers. White said the exchanges matching engine operated as intended throughout this event and that trading with advanced features like margin always carries inherent risk. And dont look for the trades to be reversed. We are continuing to conduct a thorough investigation and will keep customers updated with any resulting actions. Wit Continue reading >>

Ethereum Crash: Why Some Coinbase Traders Lost Big | Fortune

Ethereum Crash: Why Some Coinbase Traders Lost Big | Fortune

The white hot cryptocurrency Ethereum went on a wild ride on Wednesday, plummeting from around $320 to around 10 cents in a so-called flash crash. The price soon recovered but not before some investors took a terrible bath and some others made out like bandits. Ethereum, a popular new digital currency, trades on exchanges much like its older rival bitcoin. The most widely-used exchange, Coinbase-owned GDAX , operates like a traditional stock exchange, and lets traders buy stock on margin and place so-called stop loss ordersan automated instruction to sell if the price falls below a certain point. As Adam White, the VP of GDAX, explained in a blog post , one investor placed a multi-million dollar Ethereum sell order at 12:30 p.m. on Wednesday. The size of the order caused the price of the currency, which is already volatile, to dip. Things started to go really haywire, however, as the price dip triggered a series of stop loss orders. This slippage started a cascade of approximately 800 stop loss orders and margin funding liquidations, causing ETH to temporarily trade as low as $0.10, White explained. In other words, the computers executing the stop loss orders began to sell at all costs and, so long as there was someone on the other side to match the order, the trade went througheven if the price was totally irrational, and driven only by an algorithmic frenzy. Continue reading >>

What Was The Reason For Ethereum Falling To 10 Cents From $350 On The Gdax Exchange?

What Was The Reason For Ethereum Falling To 10 Cents From $350 On The Gdax Exchange?

What was the reason for Ethereum falling to 10 cents from $350 on the GDAX exchange? 2- Margin Trading : Intro to Margin Trading ? As far as Status ICO is concerned, Initial coin offerings are the new hottest thing. Startups are raising millions of dollars, and in some cases hundreds of millions of dollars, very quickly. Status raised more than $100 million through its initial coin offering, according to an early estimate . In fact, one of the first transactions involved someone who believed in the company so much that he or she put up $8.5 million worth of Ether into the ICO. Such a volume of transactions in less than three hours has congested the network. This caused ethereal transactions to be delayed. This means that there are a lot of people who are willing to sell but not as much who are willing to buy. Price - (drops) The increase in margin availability most likely brought the average liquidation price for margin calls much closer to market price if new margin positions were opened on the 19th with a ~$40 drop in price and everyone still long. That made it significantly easier for a large market order to trigger sells on leveraged positions which created a domino/chain reaction all the way down the order book. As each margin position was forced to liquidate, it ate up buy orders, which sent the price down more, triggering more liquidation orders, etc... all the way until the price hit $0.10. Do nor hesitate to get back to me if you need technical dialect explanations neither suggest edits since english is not my mother language. At 12:30pm PT on June 21, 2017 a multimillion dollar market sell was placed on the GDAX ETH-USD order book that resulted in approximately 30% book slippage. As a result, several hundred stop loss orders and margin calls were automaticall Continue reading >>

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