Ethereum crashed from $319 to 10 cents in seconds on GDAX one exchange after a multimillion dollar trade. It crashed to 10 cents in seconds. I for one put in a few lower price buy orders across my crypto estate just in the off chance this became a repeat occurence.
Ethereum is the second highest digital currency to bitcoin and had been trading as high as $352 on Wednesday. It has since rebounded from its flash-crash lows to trade to about $327 on the GDAX exchange Friday am. I didn't notice this flash crash on Poloniex as being as severe but it did crash from $321 to $290.
Adam White, the vice president of GDAX which is run by U.S. firm Coinbase, posted on the exchange's blog, outlining what took place at around 12:30 p.m. PT on Wednesday. According to him, the multimillion dollar market sell order resulted in a number of orders being filled from $317.81 to $224.48. As the price continued to fall, another 800 stop loss orders and margin funding liquidations caused ethereum to trade as low as 10 cents.
One lucky punter put in an order for 3800 Ethereum at 10 cent ($380) and it then recovered to $327 by the close of the data. If they held them until then, their nifty trade returned $1.27 million dollars... 