Ethereum [ETH] prices drop to $13 on Coinbase Pro
At around 6 am UTC, yesterday, Ethereum [ETH] prices on Coinbase pro dropped to $13 from $100 momentarily. However, a few seconds later the prices returned back to trading around $97. This anomaly, according to Coinbase, is not a serious one as the exchange said all the activities on the platform were “operated as planned”.
The odd transaction was noticed only in the ETH/USDC market on the Coinbase pro. USDC or Tether is a stablecoin pegged to one US dollar. A flurry of comments erupted on social media to find out why the “flash crash” happened. One twitterati claimed that this odd activity in the order books of Coinbase pro can be termed as a slippage, which usually happens when there is low liquidity in USDC order books.
We’re aware of price movement on one of our order books that happened over the course of regular trading activity. Over the past 24 hours, all Coinbase platforms have operated as planned and no system-wide incidents have been identified. For updates: https://t.co/428lJpkXoA
— Coinbase Pro (@CoinbasePro) December 6, 2018
These flash crashes are not a new thing for the crypto market. It is also not the first time the third largest cryptocurrency after Bitcoin and XRP is witnessing a flash crash. In 2017 a flash crash that affected ETH/USD market caused ETH prices to fall from $300 to 10 cents on GDAX exchange. GDAX exchange was owned by Coinbase but was shut down to build Coinbase pro. The flash crash of 2017 was blamed on “multimillion-dollar market sell” order. However, unlike 2017, ETH/USDC prices bounced back to trading around $97 after a few seconds.
The odd market activity which only affected ETH/USDC markets was triggered due to a manually placed selling order, according to Coinbase’s tweet. This indicates that the price drop wasn’t caused by a “flash crash”. This might also be a pump and dump scheme by the investors.
Ethereum seems to be losing its charm as the most favored cryptocurrency after Bitcoin. It has lost the race to XRP and has become the third largest cryptocurrency in the cryptoverse. Also, the crypto’s hashrate has decreased from 300 terahashes to around 180. The bear market has brought down ETH prices from a peak of $1400 to a measly $88.
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