a OKB (OKB)cryptocurrency linked to broker OKXfell 50% in just two minutes as the price went from $51 to $25. flash crash it was caused by a cascade of liquidations. Besides the OKB/USDT pair, other pairs may also have been affected by the OKB decline.
No data has been revealed on how many people are affected, or even the quantity. However, if we analyze the transaction volume at the time of the drop, we can estimate that the amount is in the millions of dollars.
Although these types of events are rare, it is not the first time it has happened. One of the most remembered is the flash crash that occurred on Binance.US in 2021, when Bitcoin fell to $11,000 in a matter of minutes. According to later reports, the drop was caused by a trader at Alameda Research, linked to the bankrupt FTX.
A flash crash causes brokers’ cryptocurrency to lose half its value within minutes
The OKB cryptocurrency (OKB) flash crash occurred early Tuesday morning (23). To be precise between 6:07 AM and 6:08 AM Brasilia time. On the chart you can see OKX’s cryptocurrency going from US$51 to just US$25, as well as a huge increase in trading volume.
Although it recovered quickly, OKB is down 10% in the last 24 hours after failing to return to $51. At the time of writing, OKB is trading at $47.
On social media, the OKX broker explained the situation and promised to refund traders affected by the flash crash.
“Due to the general downward trend of the market on January 23, the price of OKB fluctuated at the same time. After the coin price reached 48.36 USDT, this led to the liquidation of several highly leveraged positions.”the broker explained.
“The decline further caused the liquidation of committed loans, margin trading and cross-currency transactions in the process, causing the price to drop to 25.1 USDT in a short time.”
(1/2) 1, 23, 市场整体行情下行,#OK B 17:07:26 (HKT) 48.36 $USDT 后, 25.1 $USDT ，目前币价已经恢复正常。 pic.twitter.com/Y04BSaCMo6
—OKX中文 (@okxchinese) January 23, 2024
In the following tweet, OKX reveals two solutions to the problem. The first is a refund to the affected users and the second is to improve the broker’s system so that new cases like this do not occur in the future.
Finally, the decline of cryptocurrencies is widespread. While Bitcoin is trading at $39,000, other projects are also trading slightly lower this Tuesday (23).
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
