Yesterday, Binance.us revealed a lightning drop that brought bitcoin to $ 8,200. An apparent software glitch in the platform’s trading algorithm caused the crash.
During the recent Binance.us flash crash, which brought bitcoin (BTC) briefly below $ 10,000, a user saw an opportunity to acquire a cryptocurrency for the modest price of $ 11 thousand.
This information got published on Reddit by the user u / Traditional-Ebb-8380, where he also posted a screenshot of the executed transaction.
As denoted on the receipt, the user bought one bitcoin at $ 11,111.00; Right at a time when the market’s leading cryptocurrency was trading above $ 65,000 on other exchanges.
The Binance.us Flash Crash
On October 21, a lightning drop at Binance.us brought the price of BTC down to USD 8,200.
By definition, a flash crash is a fast, deep, and volatile fall in the price of an asset or security in a short period.
The fact appeared recently, right after the trade of the BTC / USD pair. The phenomenon sent BTC down 87%, with a trading volume of 592 BTC, although the price quickly normalized. From the exchange, the user has not reported anything on his networks about what happened.
On the other hand, the specialized journalist Colin Wu indicated that a software failure happened in the platform’s trading algorithm. This flaw caused the fall in the price of BTC, which is currently trading at $ 63,137.07
Previous Flaws on Cryptocurrency Platforms
Cryptocurrencies are usually volatile, and the flash crash phenomenon is not new. This same year similar failures happened and surprised many users in the crypto environment. One of them took place in February, it happened on the Kraken exchange, and the same failure occurred with ether (ETH).
February 22, when the cryptocurrency markets crashed, the price of ether (ETH) contracted, losing at least $ 400 of its value in less than 24 hours, after reaching $ 2,000. But on the Kraken exchange, the price of the Ethereum cryptocurrency crumbled down sharply to $ 700, dislocating from the broader market.
ETH traded For several minutes on Kraken at 50% below the value the rest of the market was on Monday, as data from Trading View shows.
The situation got reported by several users of the platform. They observed that, at that time, the cryptocurrency was trading above $ 1,500 on Coinbase and other exchanges.
Sudden crashes have occurred in Kraken before. Trustnodes report shows that a similar situation happened in 2018. The information refers to ETH’s flash crash in Kraken two years ago, noting that the crash could have happened because someone in the market got rid of a large sum of cryptocurrencies at a low price.
At the time, the company did not clarify why the incident happened. However, Kraken CEO Jesse Powell said that the price variation occurred due to the sell-off of assets and not a malfunction of the platform’s trading engine.
By: Jenson Nuñez
