Many of you may not have noticed the crash...the toilet flush of a downturn that happened in the blink of an eye and faster than it takes you to say Mississippi. On Wednesday, the price of ethereum crashed to as low as 10 cents from around $319 and it did so in about 1 second on the GDAX cryptocurrency exchange.
Being blames on a "multimillion dollar market sell" order, huge amounts of money were pulled from the ethereum market, making the price drop to as low as approximately 224.00 But that's not all... As the price continued to plummet, another 800 stop loss orders and margin funding liquidations were automatically activated, pulling the curtain out from under ethereum causing ethereum to trade as low as 10 cents.
Now the whole scenario wreaks of market manipulation and collusion. The biggest question this creates is, what kind of regulation are we prepared to accept to stop this kind of hack...and ultimately will it come in a form that's detrimental to the growth.
Ethereum has since rebounded from its flash-crash lows to trade to about $325 and I still like it as a long term #HOLD...
But not before some market manipulation allowed one trader to make over $1M in seconds...off of a mere 350.00 investment.