The Binance futures platform suffered a 3% flash crash

|ByRajan Dhall, MSTA

Binance CEO Changpeng Zhou (CZ) took to Twitter to announce that the companies futures platform suffered a flash crash.
In a tweet that read:
A market maker from a smaller futures exchange tried to attack @binance futures platform. NO ONE was liquidated, as we use the index price (not futures prices) for liquidations (our innovation). Only the attacker lost a bunch of money, and that was that.
 
Later in the session, CZ took to twitter again to clear a few things up. 

 

It was said that no liquidations occurred on Binance’s futures platform at the time of the sudden price drop, owing to Binance processing liquidations according to an index price.
 
The tweet did draw some criticism from the Twitterati who felt it was not correct to call out the incident.
 
CZ also added to his post confirming that the market maker and determined that the flash crash had been accidentally caused by an algorithmic parameter error.
 
This is not the first time something like this has happened. On the GDAX exchange (June 21, 2017) the price of Ethereum (ETH) fell 99.97% from roughly $318 to $0.10 in seconds. The crash was blamed on a single multi-million dollar market sell order which filled orders from $317.81 to $224.48.

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

RELATED CONTENT

Loading ...

Copyright © 2024 FOREXSTREET S.L., All rights reserved.