It’s unclear whether the trade actually went through, but a drastic candle on COINBASE Pro saw 42,000 BTC sold at $0.18.
Traders noticed a strange candle on the BTC/USD trading pair on Coinbase Pro. Some 42,000 BTC was sold at $0.18, but it may just be an ‘error.’
Problems at Coinbase
The long candle on the BTC/USD pair on Coinbase Pro today has to be seen to be believed. According to the order book, over 42,000 BTC was sold at $0.18. We can only hope that this is some error and that the trade didn’t go through.
A screenshot of the remarkable candle was posted by @CaptainScio on Twitter. As you can see, the order book shows the sale at $0.18.
Just saw this happen in the daily. 42,000+ #BTC at 18 cents? That’s a heavy error and overload for coinbase. pic.twitter.com/AmusydUO8z
— CaptainScio 16 mo's 9 days til FT Trading 8/11/21 (@CaptainScio) April 6, 2020
Perhaps a fake trade, the candle can be explained as an error on Coinbase or a possible ‘system overload.’ The exchange has not issued a statement on the strange occurrence, and it may be that the trade never processed—it was merely a UI bug.
Exchange Hiccups
Although we don’t know whether or not any BTC was sold at abysmally low prices, the occurrence is not all that uncommon in the cryptocurrency space. Ripple’s XRP
Flash crashes usually happen on days when the market experiences a drastic drop and prices cannot readjust in time. On the bloody day of March 12—which saw the cryptocurrency market drop some 50%—LINK briefly traded for close to $0 on Binance.
Sometimes, however, flash crashes can also occur due to poor liquidity. In September 2019, BeInCrypto reported that someone was able to snag some BTC at $1,800 on the illiquid BUSD/BTC trading pair on Binance.
As of now, we really don’t know what went wrong on Coinbase Pro, but we can likely assume it was merely a UI bug. Otherwise, there would be people sharpening their pitchforks on crypto-Twitter and beyond, but the reaction has been largely quiet. Coinbase might want to take more precautions to ensure their UI is optimized and correct because such mishaps can scare traders away.
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Images courtesy of Shutterstock, Trading View and Twitter.
