Homepage / Technology / Buyers beware: Lessons from the ethereum 'flash crash'
Bewertungen zu Vulkanvegas Lesen Sie Kundenbewertungen zu vulkanvegas com 3 von 5 小柳商事株式会 Mostbet Türkiye mobil uygulamasını indi What to anticipate in VDR Providers Best Country To get yourself a Wife: Asia, Europe & Latin America Technology and Asylum Procedures Business Process and Digitalization How to begin Your Blog With no Investment Software For Modern Business Setting Up the Electronic Data Areas Legal Support and Advice Intended for Small Businesses The very best Virtual VDR Providers 9 Tips for Working With Teams in Different Timezones Korean Brides -mail Order Brides From Southern Korea Choosing a Data Place Antivirus Solutions — What to Look For within a Good Anti-virus Solution Best Alternatives of VPN Software New Step by Step Roadmap for Marijuana News Relationship With A Russian Mail Order Bride: Can It Develop Suitable Family? Steve Munger: These Primary Guidelines Made Me Effective In Life With Warren Buffett, Thought about All Three Guide To Choosing The Right Mailbox Order Star of the event Web Site In 2023 Few Wins $3 Million In Pennsylvania Lotto Scratcher, Strategies Trip Privately owned Internet Access Avast Review Powerful Deal Achievement Top Rated Free VPN Services Adaware Review – Is Adaware Review Right For You? Large 15 Best Countries To find a Spouse In 2023 Online dating services Reviews Ideal Legit Snail mail Order Bride-to-be Sites To Decide On In 2023 & Feedback Thailänder Brides Pleasant Thai Mailbox Order Wedding brides To Marry Thailänder Brides Get A Thailand Deliver Order Bride The principal Expenses Ukrainian Mail Order Spouse Cost Includes The Nations Just where Girls Have One Of The Best Lives, In Chart Romancescout: Your Information To On-line Relationship Evaluations, Recommendations Tes Ship Order Bride-to-be Discover A Overseas Spouse Across the internet Free With Jetbride Com Powerful Interracial Marriages Exquisite Interracial Lovers Exactly what the Best Online dating Websites? Very best Dating Web page Reviews – Find Your web Soul Mate Ways to Create Online dating sites Profiles Long Relationship Suggestions Long Relationship Suggestions How to begin a Successful Wife Search Getting married to a Russian Child The right way to Meet Delightful Ladies Around the World To recognize Know About Ukrainian Single Girls Dating The Different Types of Sugar Daddies The key benefits of Dating a Latina Top 5 International Dating Sites Russian Women Seeking Men Overseas Cookware Interracial Lovers and the Backlash Against All of them Getting the Marriage License and Wedding ceremony Done Correct How to pick the Best Web based Marriage Company Flirting Tips For Timid People Delightful Interracial Lovers Crucial Russian Females Dating Suggestions for Men Steps to create the Most of Dating An individual From Another Country Web based Top five Romantic Honeymoon Destinations Just what Soulmate? Web based Relationships Suggestions The Challenges of Dating An individual From A further Country Setting Expectations just for Online Sugar Daddy Arrangements Marital relationship License and Ceremony Why Are Latinas Heated? Getting Foreign Bride-to-be Tips on how to Propose — What’s the Best Way to Say “I Do”? Is usually Your Long Distance Marriage Moving Too quickly? Dating Etiquette — The Modern Rules of Seeing A Quick Guide to the Use of NLP in Chatbots Building Trust in Human relationships Les mariages interracials les plus réussis sont ceux basés sur l’amour & le respect Browsing through Cultural Differences in Asian Human relationships How you can Have a cheerful Marriage The right way to Fix a Relationship With out Hurting Your companion How to Spice Up a lengthy Distance Relationship The main advantages of Online Dating What is the Best Female Race to Marry? Western european Women Stereotypes Why Asian Girls Like Bright white Guys How to Succeed in On the web Relationships Top 5 Online Connections Tips Top 5 Online Connections Tips Leading Countries With Best Foreign Brides Powerful Interracial Relationships Asian Wedding Icon Meanings Where to Find a Deliver Order Star of the wedding Wedding ceremony Traditions in Ukraine For what reason Asian Girls Like Light Guys Asian Brides Via the internet Tips on how to Propose – What’s the simplest way to Say “I Do”? 5 Latina Wedding party Traditions Will possibly not Have Dreamed about When should you Stop Online dating Other People in Online Dating Latina Relationship Interaction Styles How to Find a Bride On line Good Interracial Relationships Oriental Wedding Practices Top five Online Relationships Tips The right way to Meet Overseas Woman and Create a Longer Distance Romantic relationship Where to Meet Latina Mail Buy Brides Where to get a Hot Asian Star of the event

Technology

Buyers beware: Lessons from the ethereum 'flash crash'

One event this week shows why digital currency markets still have a long way to go before they’re safe enough for large-scale trading.

On Wednesday afternoon, a “multimillion dollar” sell order was placed on the GDAX exchange for the digital currency ethereum. That triggered a chain of events that resulted in ethereum briefly plunging to 10 cents on the exchange, according to a blog post by the exchange’s vice president, Adam White.

Stop-loss orders — baked-in directives to sell an asset once it falls to a certain price — contributed to the temporary drop. The same issue contributed to the May 2010 flash crash that sent the Dow Jones industrial average plunging nearly 1,000 points only to recover minutes later. Since then, the U.S. Securities and Exchange Commission approved a “limit up and limit down” mechanism to halt stocks after sudden moves of more than 5 percent.

“What we’ve been doing in the stock market to prevent flash crashes, they’re nowhere near that in the cryptocurrency market,” said Joe Saluzzi, co-founder of Themis Trading and co-author of “Broken Markets,” a 2012 book criticizing the way regulators have allowed high-frequency traders to take unfair advantage of markets.

“You have a big market that has no confidence now,” Saluzzi said. “How are you going to attract sizeable investors?”

Wall Street has paid increasing attention to digital currencies like bitcoin and ethereum, thanks largely to their stunning surge to record highs this year. Financial institutions also see great potential in the blockchain technology supporting the cryptocurrencies and some expect it could transform the world the way the internet did.

However, the digital currencies have shown they’re still unable to support widespread demand or application.

“People are excited by what they read, but frankly there’s not a lot of commercial structures out there that have really scaled,” said Jim Pratt, SVP and GM of WEX Virtual Payments. “Inevitably if something can be done faster and cheaper with more transparency, governments and central banks will have to find the best way to regulate and monitor this.”

High demand for ethereum this week clogged the network, while GDAX scrambled to manage the fallout from the large “multimillion dollar” sell order and ultimately restored trading.

GDAX’s Adam White said the firm is investigating the price drop. “It is important to note that these trades are final in accordance with our GDAX Trading Rules (Section 3.1). Honoring properly executed orders is critical to maintaining the integrity of an exchange,” he said in the blog post.

“It’s part of the infrastructure as we have it right now,” said Brian Kelly, a CNBC contributor and founder of Brian Kelly Capital, which runs a digital assets fund. He said if GDAX were to reverse the 10 cent ethereum trades, that would put into question the validity of other trades.

Kelly said his larger digital currency orders are primarily placed over-the-counter, outside an exchange.

The GDAX issues follow other issues in digital currency markets in the last few weeks.

Coinbase owns the GDAX exchange and is a popular way for ordinary investors to purchase digital currencies bitcoin, ethereum and litecoin. Coinbase reported a website outage Wednesday, and “degraded performance” on four days last week, amid a surge in traffic.

Bitfinex, the largest U.S. dollar-based bitcoin exchange, reported distributed denial of service attacks last week, as did another smaller exchange, BTC-e.

Cybersecurity firm Proofpoint told CNBC it has seen an “uptick” in online scams to trick consumers into sharing credentials for their digital currency holdings. “The potential losses are virtually unlimited given that scammers are attempting to gain access to both cryptocurrency wallets and exchanges,” Proofpoint’s research team said.

Users of another exchange called Poloniex complained on Twitter and a Reddit discussion forum that they could not withdraw funds from the exchange. Poloniex did not immediately respond to a request for comment.

That said, “no one is being forced into these purchases. If there’s too much risk for the purchaser they shouldn’t be buying,” said Stephen Obie, partner at law firm Jones Day and representative for Overstock.com on its use of blockchain. “We’re in the very early stages of a technology regulators are trying to get comfortable with.”

The New York State Department of Financial Services has begun examinations of virtual currency companies, according to a June 15 release of the department’s annual report. Circle, Coinbase and Ripple have received a so-called “BitLicense” as required by 2015 New York State regulation, CoinDesk said.

To be sure, the latest challenges of the cryptocurrency world aren’t the worst the industry has seen. Last summer, a “DAO” hack drained more than 3.6 million of ethereum into another network, sending ethereum down more than $7 to $13, according to a CoinDesk report. In 2014, the largest bitcoin exchange at the time, Mt. Gox, filed for bankruptcy and said it lost 750,000 of its users bitcoins and 100,000 of the exchange’s own.

Source: Tech CNBC
Buyers beware: Lessons from the ethereum 'flash crash'

Comments are closed.