Yesterday was a day at the cryptomarkt. I can live with the American cryptobeurs Coinbase created a snowball effect of crazy events. So what was yesterday all about? For a reconstruction.
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Coinbase Pro went offline
Last night at around 21:00 Dutch time, Coinbase, Pro, offline. Traders are able to more than an hour, there are no orders to place. According to some users, stop-loss orders will automatically be cancelled.
A stop-loss order is a way to limit your losses. For example, you can say ” Sell my bitcoin when the exchange rate among the 9,000 dollars will come.’
Then Coinbase is offline was and the bitcoin price there 9.240 dollars. At the moment, is that Coinbase is again able to act, the rate was down to a 9.050-dollar, and many traders in heavy losses.
The API of Coinbase, showed it in the wrong direction
This is not the only problem. Due to a bug, as it showed that the API of Coinbase, a very low rate: 4.250 us dollars.
pic.twitter.com/s0VCqJHh8m
— ME (@cryptodildo) to October 31, 2019
An API is a way for information to be shared with other parties. A flaw in the API of Coinbase, it is a problem, because many of the derivative exchanges established the exchange rate is partly based on that of Coinbase. And that’s where it starts, the snowball of trouble rolling it. The Dutch Deribit was to do with it.
The Flash crash on Deribit
Deribit is a derivatenbeurs on which you can trade in bitcoin futures contracts. Featuring bitcoin futures to speculate on a rise or a decline in the price of bitcoin. You can not directly trade in bitcoin on the trading platform. The price on the Deribit it is, therefore, not determined by the supply of and demand for bitcoin, but it is a balance between the rates of the various cryptobeurzen around the world.
The exchange rate of Coinbase counts about 18%, on average, in the Deribit. The flash crash on Coinbase dropped the price on the Deribit in rapid succession. A lot of merchants are as a result vulnerable. Their position will be automatically closed. That name is also referred to as liquidation.
Deribit has already let you know, the investors have to pay for it. All In all, Deribit 150 to bitcoin and paid out in the amount of 1.3 million dollars:
We have reimbursed all affected accounts. A total of ~150 BTC has been reimbursed by Deribit.
The insurance fund will remain unaffected, and all reimbursement will be paid by Deribit Company’s reserves.
Once Again, our sincerest apologies for all-cause and solution caused.
— Deribit (@DeribitExchange) On November 1, 2019 At The Latest