Coingape - 3/12/2020 1:19:10 PM - GMT (+0 )
- Chainlink drops by 99.9% on Binance, logs low at 0.0001 USDT
- Market Slippage due to extreme volatility on futures market seems to be reason.
As recently reported on CoinGape, during the last few days the bears could not affect LINK much as it held onto support. However, the panic selling due to coronavirus scare that has cause a 24% drop in Bitcoin has now caused massive liquidations in Link.TradingView)
The Open Interest on Link/USDT contracts on Binance have dropped by 57.8% from $10.5 million in less than 15 minutes. This could be evident of wide scale liquidations on Link orders.LINK/USDT Open Interest on Binance
No market can guarantee protection against sharp movements for all users under all circumstances.
On how Binance’s liquidation engine responded during the time is not clear. Nevertheless, we can still believe that low stops and manual closing during the panic must been disheartening for a trader.
Moreover, if BitMEX is taken as reference, since the situation was unavoidable and can happen again, it is unlikely that Binance will employ the SAFU (Secure Asset Fund for User) to reimburse those affected by the abnormality. We are waiting for Binance to respond on the issue.
The price of LINK at 13: 15 hours UTC on 12th March 2019 is $2.38. It is down 40% on a daily scale.
How do you think the market slippage incidents on futures exchanges can be avoided? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com