GDAX to Pay Back Customers After Ethereum Flash Crash, Investopedia
On June 21, traders observed te horror spil Ethereum wasgoed succesnummer by a flash crash. Te order to regain their confidence, while demonstrating long-term commitment toward them, the Total Digital Asset Exchange (GDAX) has determined to compensate affected accounts for the losses suffered.
Wij will establish a process to credit customer accounts which experienced a margin call or zekering loss order executed on the GDAX ETH-USD order book spil a meteen result of the rapid price movement at 12.30pm PT on June 21, 2018. This process will permit affected customers to restore the value of their ETH-USD account to the omschrijving value of their ETH-USD account at the uur prior to the rapid price movement said Adam White, vice voorzitter of GDAX.
Spil vanaf further clarification, GDAX said that the exchange is honoring all executed orders and no trades will be reversed for those customers who had packed buy orders. For customers who had margin calls or zekering loss orders executed, the exchange is using company funds to credit them.
The two-year-old exchange offers a secure and effortless way for traders of all levels to buy and sell digital assets online instantly across six trading pairs. Te May 2018, Coinbase Exchange began supporting ether trading and embarked operating under a fresh brand: GDAX (Universal Digital Asset Exchange). GDAX wasgoed thus launched spil an exchange for professionals to trade digital assets.
According to the company, the steep fall on June 21 took place after a multimillion dollar market sell wasgoed placed on the GDAX ETH-USD order book. The phat sell order resulted te orders being packed from $317.81 to $224.48, translating into a 29.4% book decline. This further triggered approximately 800 stop-loss orders and margin funding liquidations, causing ETH to temporarily trade spil low spil $0.Ten.
The flash crash wasgoed caused by a skinny order book and a large sell order on GDAX. The low liquidity caused a price druppel which triggered a series of margin calls crashing Ethereum’s price, thus sparking scare te the market said Bobby Ong, Co-founder, CoinGecko, a cryptocurrency gegevens webstek.
While it’s a good budge to build customer confidence, cryptocurrency traders should be aware that the measure adopted by GDAX isn’t the standaard.