Polkadot’s DOT went through a major flash crash on Binance’s COIN-margined futures platform which saw its price reduced to $0.20.
- The past couple of days have been somewhat challenging in the cryptocurrency market, as the entire capitalization saw around $150 billion wiped off.
- The adverse developments followed Wall Street’s slump as legacy markets suffer throughout the entire week.
- Meanwhile, Bitcoin’s realized correlation with the S&P 500 sits at a 5-month high which, naturally, reflects on the entire market.
- One particularly peculiar thing took place on the Binance derivatives platform, Binance Futures.
- More specifically, the DOT/USD Quarterly perpetual futures contract on the COIN margined section of Binance Futures went through a massive flash crash.
- As seen in the above chart, the price declined from a high of $33.862 to a low of $0.20 in an instant.
- Speaking on the matter for CryptoPotato was Riley Kim, PR and Corporate Communications at Binance Futures who clarified what happened:
A user who held a large position put a single-stop market order in the market which triggered this needle. It didn’t affect any other users positions as we are using mark price for liquidations. We will add more controls of stop market order size limits to prevent similar recurrence.
- Breaking down the chart to a 1-minute candle pattern reveals that the entire thing took no more than 60 seconds.
- This is not the first time something of this kind has happened.
- As we reported last year, Bitcoin’s price flash crashed on Bitstamp.