June 25, 2021

Cheap Polkadot (DOT) at $0.20 Following a Flash Crash on Binance COIN Margined Futures

2 min read

Polkadot’s DOT went through a significant flash crash on Binance’s COIN-margined futures platform which saw its cost lowered 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 negative advancements followed Wall Street’s slump as tradition markets suffer throughout the whole week.
  • Meanwhile, Bitcoin’s recognized connection with the S&P 500 sits at a 5-month high which, naturally, assesses the whole market.
  • One particularly strange thing took place on the Binance derivatives platform, Binance Futures.
  • More particularly, the DOT/USD Quarterly perpetual futures agreement on the COIN margined area of Binance Futures went through an enormous flash crash.
dotusd_perp_chart
  • DOT/USD, COIN-M Perpetual, Binance. Source: Binance As seen in the above chart, the rate 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 occurred:

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 utilizing mark rate for liquidations. We will add more controls of stop market order size limitations to prevent similar reoccurrence.

  • Breaking down the chart to a 1-minute candle light pattern exposes that the entire thing took no greater than 60 seconds.
  • This is not the first time something of this kind has taken place.
  • As we reported in 2015, Bitcoin’s rate flash crashed on Bitstamp.