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Ethereum Flash Crash Millionaire

Coinbase Offers To Reimburse Losses After The Ethereum Crash

Coinbase Offers To Reimburse Losses After The Ethereum Crash

Coinbase offers to reimburse losses after the Ethereum crash Coinbase has made the surprising move to reimburse losses incurred by traders during the Ethereum flash crash, which saw the price of ETH drop to $0.10 USD. Millionaires were lost and made in the blink of an eye thanks to an enormous flash crash in the Ethereum market earlier last week, in which the price of ETH dropped from $320 USD down to $0.10 USD in a matter of seconds on GDAX. TechCrunch reports that the flash crash was caused by a trader placing a multi-million dollar sell order at market price, meaning that the cryptocurrency could change hands at whatever price bidders were presently offering, regardless of its difference from the present price of ETH. Read: The United Nations leverages the Ethereum Blockchain to send aid to Syria The order caused ETH prices to drop by some 30% to $224 USD, which correspondingly caused some 800 stop-loss orders and margin liquidations that forced the price of the cryptocurrency to plummet to $0.10 USD. TechCrunch notes that GDAX typically reminds users who initiate a large sell order that their effort will cause slippage in the market, leaving the presumption that the trader who filed the order didnt know or care for the effect of their actions. In the wake of the crash, GDAX announced that it will use company funds to reimburse traders who suffered losses as a result of a margin call or stop loss order executed, offering that: We will establish a process to credit customer accounts which experienced a margin call or stop loss order executed on the GDAX ETH-USD order book as a direct result of the rapid price movement at 12.30pm PT on June 21, 2017. This process will allow affected customers to restore the value of their ETH-USD account to the equivalent value of the Continue reading >>

Why The Ethereum Flash Crash Isnt Surprising, And What It Means For Crypto

Why The Ethereum Flash Crash Isnt Surprising, And What It Means For Crypto

Why the Ethereum Flash Crash Isnt Surprising, and What It Means for Crypto by ConsenSys on June 22, 2017 53877 Omega One Update (Jun 26, 4:30 pm): In an unprecedented move, GDAX will pay out of its own company pockets to affected customers who had margin calls or stop loss orders executed. Source here. On Wednesday, the price of Ether flash-crashed by over 99.9% in less than a second on GDAX , one of the largest cryptocurrency exchanges. This was due to a multi-million dollar sell order being placed on the exchange. Because the exchange did not have enough buy orders on its books to accommodate a sell this large, the price crashed immediately from $317.81 to $224.48; this movement was enough to then trigger a wave of about 800 automatic position liquidations due to margin calls and stop-loss orders, driving the price briefly as low as $0.10, and causing GDAX to suspend trading. This is only the most recent of a series of similar events across crypto exchanges , and rather than being a reflection on GDAX in particular, its a symptom of the underlying problems created by the stress of capital flow increasing faster than market infrastructure development. Although the price quickly returned back above $300, the millions of dollars that investors lost due to forced selling of their positions will not be recovered. This incident highlights the relative immaturity of the cryptocurrency trading ecosystem, which has been stressed by a 20x increase in daily trading volume since the start of 2017 without any fundamental change in market structures. From the trader-in-questions side (assuming they were simply trying to get out of this position in a crude way and not a malicious actor or market manipulator) dumping the whole position at once will have likely incurred millions in l 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 >>

Gdax To Credit Traders For Ethereum Flash Crash Losses

Gdax To Credit Traders For Ethereum Flash Crash Losses

GDAX To Credit Traders for Ethereum Flash Crash Losses Matthew Neuteboom June 25, 2017 5:00 am GDAX has promised to credit traders for any losses they experienced during the exchangesEthereum flash crash on June 21, when prices temporarily dropped to as low as $0.10. Lastweek, GDAX experienced an Ethereum flash crash when amultimillion 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 exchanges ETH price has since recovered and is now trading for just over $300. GDAX is now offering to credit traderswho experienced a margin call or stop loss order executed as a result of the price drop. In a blog post released Friday , GDAX saidit 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. 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 legitimatetrade 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 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 Flash Crash

Ethereum Flash Crash

Ethereum sought to remind many of the volatility of cryptocurrencies when a multi-million dollar dump saw the price of Bitcoins biggest rival crash from over $300 to less than $1 in a matter of seconds. Ethereum has been rocketing in the markets as it surged earlier this year from being a minor coin trading for a few dollars to hit highs of $250+. The alternative to Bitcoin peaked close to $400 earlier this month before it, as well as a host of other Alt-Coins, took a massive dive. Then, on Wednesday, the price of Ethereum, which was sitting in and around $320, plummeted down to around 10 cents in a matter of seconds on GDAX. A multi-million dollar sell order is being blamed for this sharp, flash crash, and then subsequent rebound, but the implications are massive. The one sell order triggered off a host of other stop orders which cataclysmed into a death spiral for the coin, leaving many invested in Ethereum with nothing as their margined sell order orders were activated and their coins sold off at extremely cheap rates. These stop orders are in place often as safety nets in order for buyers to dump their coins if there is threat of a massive crash, and because the stop orders are usually set at a loss, in order to protect against total loss, many Ethereum users were left stung by the crash. Many of these red-faced users took to social media to accuse GDAX of price manipulation and illegal doings, however this was refuted by a spokesperson from the exchange. They claim that their investigation found no wrongdoing within the market crash. They did express that the investigation is ongoing, however, and that transactions would not be reversed. A screenshot taken on GDAX showing a long thin red tail where the price dropped close to zero Our initial investigations show no Continue reading >>

Ethereum Crash Wiped Out Many And Also Minted A Millionaire

Ethereum Crash Wiped Out Many And Also Minted A Millionaire

Ethereum Crash Wiped Out Many And Also Minted A Millionaire Even if youre not interested in virtual currencies, you might have heard the names ethereum and GDAX yesterday on social media. Ethereum is a cryptocurrency, much like Bitcoin, and its one of the more actively traded virtual currencies. There was a flash crash in its value yesterday, the term refers to a steep immediate decline in value, which wiped out many traders but also apparently minted a millionaire. Ethereums price on the GDAX cryptocurrency exchange fell to as low as 10 cents from $319 in about a second due to a multimillion dollar market sell order. It was trading as high as $352 on Wednesday. Vice president of the GDAX exchange Adam White said that the flash crash was initiated by a multimillion dollar market sell order that was executed around 12:30 pm PT. It resulted in orders being filled from $317.81 to $334.48. The flash crash was basically caused by automated market orders that are designed to help a trader limit their losses. They are called stop loss orders, as the name suggests, the order is automatically executed once the instruments price reaches a certain limit so that the trader can cap losses. Once the multimillion dollar market sell order was fulfilled, the price continued to fall which trigged another 800 stop loss orders. Moreover, margin funding liquidations further exacerbated the problem and pushed the cryptocurrencys value to as low as 10 cents. Many ethereum traders criticized GDAX on social media and some even alleged that perhaps some illegal activity was taking place. However, White says that initial investigations show no signs of wrongdoing or account takeovers. A thorough investigation into the flash crash is being conducted as well. The GDAX exchange had to temporarily h 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 >>

Ethereum Flash Crash - Million Dollar Payout?

Ethereum Flash Crash - Million Dollar Payout?

Ethereum Flash Crash - Million Dollar Payout? Ethereum Flash Crash - Million Dollar Payout? Ethereum crashed to a price of around 10 cents after trading in the low $300 range seconds earlier. The crash occurred on the GDAX cryptocurrency exchange at around 3:30 ET Wednesday. There has been a flurry of accusations ranging from claims of market manipulation to assertions of weak price controls within GDAX. However, in a blog post Adam White, the vice president of GDAX said he has no reason to believe the crash was caused by nefarious activities. Instead, White blamed a "multimillion dollar market sell" which filled a number of different orders as low as $230. According to CNBC "As the price continued to fall, another 800 stop loss orders and margin funding liquidations caused ethereum to trade as low as 10 cents." It also seemed to be a large money making event for some too. On the trading forum StockTwits, user John DeMasie posted a screenshot of trade history around the time of the flash crash. It showed one person had an order in for just over 3,800 ethereum if the price fell to 10 cents on the GDAX exchange. Theoretically this person would have spent $380 to buy these coins, and when the price shot up above $300 again, the trader would be sitting on over $1 million. CNBC has been unable to verify the screenshot posted by DeMasie. What do you guys think? What does this say about the future of cryptocurrency trading? Continue reading >>

Ethereum Traders Prepare For The Next Flash Crash With Bids For Millions Of Eth

Ethereum Traders Prepare For The Next Flash Crash With Bids For Millions Of Eth

Ethereum Traders Prepare for the Next Flash Crash with Bids for Millions of Eth Following yesterdays spectacular flash crash which sent eths price down to 10 cent, ethereum traders have mobilized with bids for nearly 3 million eth at under $50, hoping to catch the next huge market sell. Bids for nearly 3 million eth at under $50. Theyre likely dreaming of instantly turning $350 into one million, as one eth trader did yesterday during the flash crash, scooping thousands of eth at just 10 cent each. These flash crash events, however, have only happened once a month, starting in April when a GDAX glitch sent price to 6 cents, in May when a large sell order at Kraken sent it to $20, and yesterday when a large sell order sent it to 10 cent. But such things are unpredictable, so eth traders are preparing just in case, hoping to strike lucky and get instantly rich thanks to either some fat finger or perhaps some drunk trader who thinks its a great idea to sell millions at market order. A market order which then causes a cascade of stop losses and margin calls, sending price further and further down, assisted somewhat by panicked traders too, so giving us a spectacle. Some lose their shirts in the process, with their funds being instantly obliterated as the order book is quickly vacuumed, while some others strike it rich, as the eth trader did yesterday. However, flash crash events are somewhat rare, so locking up all that fiat in unlikely to be filled bids does not come without cost. Theres lost opportunity, and its being held by a third party, so there is counter-party risk too. Eventually, therefore, the bids down there may thin considerably as everyone forgets and moves on, but right now eth traders are sitting at their desks, tapping their fingers, while praying for anoth Continue reading >>

Flash Crash Of Ethereum Makes 1 Person A Millionaire

Flash Crash Of Ethereum Makes 1 Person A Millionaire

Ethereum crashed from $319 to 10 cents in seconds on GDAX one exchange after a multimillion dollar trade. It crashed to 10 cents in seconds. I for one put in a few lower price buy orders across my crypto estate just in the off chance this became a repeat occurence. Ethereum is the second highest 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 $327 on the GDAX exchange Friday am. I didn't notice this flash crash on Poloniex as being as severe but it did crash from $321 to $290. 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 him, 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. One lucky punter put in an order for 3800 Ethereum at 10 cent ($380) and it then recovered to $327 by the close of the data. If they held them until then, their nifty trade returned $1.27 million dollars... Downvoting a post can decrease pending rewards and make it less visible. Common reasons: 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 >>

Ethereum's Flash-crash Victims Are Getting Their Money Back

Ethereum's Flash-crash Victims Are Getting Their Money Back

Ethereum's flash-crash victims are getting their money back facebook linkedin twitter email copy link People who lost money as a result of Ethereum's flash crash on Wednesday are being made whole, according to a blog post from GDAX. We will establish a process to credit customer accounts which experienced a margin call or stop loss order executed on the GDAX ETH-USD order book as a direct result of the rapid price movement at 12.30pm PT on June 21, 2017. This process will allow affected customers to restore the value of their ETH-USD account to the equivalent value of their ETH-USD account at the moment prior to the rapid price movement. To clarify: For customers who had buy orders filled we are honoring all executed orders and no trades will be reversed. For affected customers who had margin calls or stop loss orders executed we are crediting you using company funds. Ethereum's price crashed from $296 to $0.10 around 12:30 p.m. ET time Wednesday on GDAX's exchange. It recovered those losses in a matter of minutes. The entire decline cannot be seen on the chart below, as it shows the price in one-minute increments and doesn't display every tick. Continue reading >>

One Ethereum Trader Just Made $1,142,400 In Seconds, Thanks To An Epicglitch

One Ethereum Trader Just Made $1,142,400 In Seconds, Thanks To An Epicglitch

One Ethereum trader just made $1,142,400 in seconds, thanks to an epicglitch Yesterday, a market where people trade the Bitcoin-like cryptocurrency Ethereum crashed instantly. The value of Ether (the Ethereum currency) plunged from about US $300 to $0.10 in seconds. Then it bouncing right back up to $300. Heres how this extremely unlikely event unfolded: Around 12:30 pm PST the price of Ether which had been trading on the GDAX currency exchange at around $300 suddenly dropped to $0.10. The official explanation is that a trader placed a multi-million dollar order to sell Ether. In the chaos, computers sold off Ether in automated, price-triggered sell orders. Traders lost millions of dollars. But one trader had an automated buy order telling computers to buy 3,809 Ether if it ever dropped so low as $0.10. Within a few minutes, the price of Ether completely recovered to around $300. This meant that the 3,809 Ether the trader had just bought was now worth $1,142,700. The trader had made a 300,000% return within a few minutes. Weve had flash crashes like this before ( 2010s sudden Dow Jones price drop of 9% ). But nothing of this magnitude, where an asset lost 99.96% of its value in a matter of seconds. And in case youre wondering, no GDAX is not issuing refunds or reversing any of these trades. Heres their official explanation of what happened . Update from GDAX : We will establish a process to credit customer accounts which experienced a margin call or stop loss order executed on the GDAX ETH-USD order book as a direct result of the rapid price movement. All this leaves some lingering mysteries: Why did the price of ether crash so suddenly and so completely? Did someone intentionally manipulate the market with the multi-million dollar sell order? Why didnt GDAX have count Continue reading >>

Ethereum Mini Flash Crash Again On Gdax

Ethereum Mini Flash Crash Again On Gdax

As we all know, theres been a huge flash crash which was triggered by a multi million dollar market sell couple of months ago which made the price of ethereum go from $300 to $0.10 in few seconds and also made a guy millionaire in seconds who had a buy order for 3,800 ETH when price hits 10 cents. Today it happened again today on GDAX , an exchange for Bitcoin, Ethereum and Litecoin by Coinbase. between 12:05 PM 12:10 PM EDT, theres a mini flash crash which caused the price of Ethereum to go down by 10% and recover in a matter of seconds. The flash crash was basically caused by automated market orders that are designed to help a trader limit their losses. They are called stop loss orders, as the name suggests, the order is automatically executed once the instruments price reaches a certain limit so that the trader can cap losses. There was a volume of 6642 ETH in this 5 minute time frame and price has crashed from 0.05760 to 0.05104 which is about 11%. Though its very minimal compared to volatility in cryptocurrency space. It sure was a delight for few orders that were filled by this crash. Well update more details on this as we receive them. Continue reading >>

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