• Chainlink drops by 99.9% on Binance, logs low at 0.0001 USDT
  • Market Slippage due to extreme volatility on futures market seems to be reason.

As recently reported on CoinGape, during the last few days the bears could not affect LINK much as it held onto support. However, the panic selling due to coronavirus scare that led to a 24% drop in Bitcoin,has now caused massive liquidations in Link.

linkusdt binance
Link/USDT 15-min Chart on Binance (TradingView)

The Open Interest on Link/USDT contracts on Binance have dropped by 57.8% from $10.5 million in less than 15 minutes. This could be evident of wide scale liquidations on long Link orders.

link binance open interest
LINK/USDT Open Interest on Binance

A similar market slippage incident was recently witnessed on BitMEX with XRP contracts. The exchange responded with the claims that,

No market can guarantee protection against sharp movements for all users under all circumstances.

On how Binance’s liquidation engine responded during the time is still not clear. Nevertheless, we can still believe that low stops and manual closing during the panic must been disheartening for some traders.

Moreover, if BitMEX is taken as reference, since the situation was unavoidable and can happen again, it is unlikely that Binance will employ the SAFU (Secure Asset Fund for User) to reimburse those affected by the abnormality. We are waiting for Binance to respond on the issue.

The price of LINK at 13: 15 hours UTC on 12th March 2019 is $2.38. It is down 40% on a daily scale.

How do you think the market slippage incidents on futures exchanges can be avoided? Please share your views with us. 

Source: Coin Gape