Cryptocurrency Waves has experienced a massive short-term price slump at 10:52 am on Binance today. In just one minute, the price dropped from 51240 to 10 Satoshi. It was about 50,600 Waves over the table, which currently corresponds to about USD 1.2 million.
Almost the whole offer was bought. The price fell 99.98% and recovered abruptly. The value of the Waves of the Lucky Order with the lowest order has risen by 5100 times within seconds, or by 500900%.
What happened?
What exactly happened can only be suspected. Most likely, a wholesale seller accidentally ran a market order instead of a limit sell order. All purchase offers are served sequentially from top to bottom and due to that the price drops drastically. The next buyer who executes a market order buys again for the last sale offer before the flash crash. The price settles down again.
While the wholesale seller carries a considerable amount of damage, the buyers are happy with the unusually low order on the gift.
What is Waves?
Waves is a platform for smart contracts. The founder Alexander Ivanov founded the project after leaving NXT in 2016. Waves is known for its DEX, one of the first ever in the crypt world. After a major overhaul of the Wallet towards the end of 2018, the price of waves has increased significantly, contrary to the general crypto market conditions . Currently the project is ranked 29th on Coinmarketcap.
Conclusion
Flash crashes are extremely rare as traders usually handle their funds with care. But every now and then an error happens.
As a seller you should always pay attention when placing your order. Especially when it comes to large sums. On the buyer side, one can quite speculate on such events. The likelihood of success, however, is likely to equal that of the lottery. The last major flash crash occurred last December on the Coinbase Pro crypto market. At that time, the price of the ether was bought down from $ 100 to $ 13.
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