BREAKING NEWS: Ether Flash Crashes To A Penny / Margins Wrecked On GDAX / Coinbase Investigating

in breakingnews •  7 years ago 

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@crypt0,
Thank you for helping my husband @isaac.rodebush learn so much about Cryptocurrency. He watches your videos all the time. What you have tough him has provided opportunities are family has never dreamed of before.

My pleasure- you can let him know I followed him just now, and that I appreciate all of the support you guys have had for the channel for a while. How rewarding is it to read a comment like yours, about the good things crypto is bringing to your family?? :D

Cheers, and keep at it!

@crypt0,
Thanks for your words to my wife @sarahjanele You have done so much good in the mission of"Decentralizing the World" I would love to meet up in LA and treat you and your girlfriend out to dinner with my wife and I. I would also love to introduce you to a good friend of mine the co-founder fo coinsource.com Travis Gough. He is a very passionate advocate to fourth meaningful uses for blockchain services.

Having just finished my degree in Finance I have turned down my Job at am major finance company starting this July to focus 100% on consulting/educating people on cryptocurrency and blockchain technology.

This industry needs to be a part of financial planning and wealth management in order to provide people with a healthy diversified retirement and investment plan as a hedge against global markets. Having talked to 5 different financial planners two of them had heard of bitcoin but none of them had known about it enough to recommend as an investment to clients. This needs to change! I have been consulting many people on how to switch over a percentage of retirement, with great success to get the remarkable returns this industry has to offer.

With stocks being at all time highs we need to be mindful of the major correction that they will face and help as many people as soon as possible from losing substantial wealth.

We have so much work to do to successfully educate the masses. I am happy to be at the forefront of it with you and People Like Yourself, Amanda Johnson, and Travis Gough. I just went to breakfast with Amanda to talk about the most prominent ways to build the Dash community the Evolution Wallet is a treat in store.

Best,
Isaac

Uhhhm, some ETH holders lost half their $$$ becuz they had a stop set in ETH...and you're spewing about what might happen in the stock market? I sure "hope" teh govmint regulates this industry real quickly...like real quickly. :-)

I only would advise someone that was retired age 55+ to put 1-3% of retirement into cryptocurrency.

Regulation is a fine line between protection and slavery.

That's why it is important to cast your vote and elect witnesses that will best the progress and success of the Steem Community. We don't want regulation to fall into the wrong hands of any organization whether it be steem, SEC, or local and state governments.

Not sure how you can even suggest anyone put 1% of their retirement into an asset where even a stop can't protect you from losing half of your money. What just happened with ETH is now "fact." Unless you want to change the story and tell me that yes, crypto's can "obviously" be manipulated as investment assets...the story pushed by ALL crypto believers is that bitcoin, ethereum, it doesn't matter which one it is...it CAN'T be manipulated. Well...bullshit! :-)

Hold your own coins in a Private Wallet. Then watch the fun. You will still have those Coins when the Crazy Period is over.
Think long Term, you will be fine.
Gazza.

How do you sell to generate a profit if you hold them in your private wallet? Do you have to transfer them into one of the exchanges? Thanks. I was wondering how that works.

Did You see what coinbase is doing! they are covering all the transaction losses

https://steemit.com/gdax/@austinsandersco/gdax-reversing-margin-calls

I just heard about that from Kenn Bosak's channel! Crazy smh....

I saw that! insane! i might have to just watch this one now.. lol so your gunna have to make another one for me drive tomorrow buddy! sorry :p

lol sober straight face... "somebody says i just shit my pants" AHAHAHAH!

It must have been devastating for people who lost their ethere at such low prices. and on another hand a great opportunity for the lucky ones who bought eth at such a low price.

nice post i like that can you tell how can you say that i think this crypts currencies is world best online work

Why would you post that link here?

Good point

Watching Ethereum flash drop to $13 had to be one of the scariest things I've seen in the crypto space

Never set Stop Losses in long term investments is how I read that. Eeesh

don't sell Ethereum very soon it will go high and it is expected it will cross the bitcoin price till ennd of 2018
those pepole who dont make profit in bitcoin etherum is golden opportunity grab it and hold till end of dec 2018 good luck

why specifically "till end of dec 2018", if you don't mind me asking :) ?

Trust me for sure it is!

Thanks for dropping a link without any explanation as to why! (cough cough spam)

Sorry man it was late and I wanted you to see why I thought coinbase is lying to us all in there blog.

;-)

I think we will see more....

I am so so so glad I didn't see that in real time. By the time I knew about it, it was back to it's shiny $325 self. Ignorance, in this case, was bliss.

wow

That's insane!

I was lucky enough to buy 3 ether during the flash crash! $$$$$$$$ to the moon, now that i'm on board. =)

you were really lucky and I am happy for you

Not sure how I would feel about $.12 ether knowing that my gain was someone's unexpected loss.

Wow, just bought my first Ether yesterday. Definitely a great update. I didn't know of the dangers with trading which you explained definitely will be more careful now. Thanks for the great post.

Oh man! thanks for the update. These bed meetings aren't as formal as pool meetings but it is still great information. lol

What website can i subscribe to that will send me alerts when stuff like this happens?

  ·  7 years ago (edited)

I hate when people portray ETH like this. This had NOTHING to do with the actual value of ETH.

I just wrote this about this matter, please read if you reject 'clickbait' :

https://steemit.com/ethereum/@mikev/ethereum-did-in-fact-not-crash-to-usd0-01-this-is-false-information-stop-spreading-fake-news

@crypt0 probably has ZERO eth and is a BTC maximalist

Actually, it's 43% of my holdings- just saying like it is, man. I've never said the ETHEREUM blockchain was at fault, and hasn't been whatsoever. This is an issue with a private exchange, and it's users, who definitely suffered serious price slippage :)

  ·  7 years ago (edited)

Fair enough, but "Flash Crashes" certainly implies the former over the latter...

And yes, as users and owners of ETH, I think it's important to educate those around us of the realities behind the headlines.

You're absolutely right, Mike, and generally I try to be as descriptive as possible in the headlines- however YouTube has limits on these, and it causes me to try and be concise.

Generally speaking, if you watched the short video, it was pretty clear what I mean within a small span of time. The headline didn't seem to confuse many people, but I also get where you come from.

Zerohedge.com is great and they also tweet constantly

Amazing! Thanks for a crazy news.

I love Coinbase and it's simplicity for users to operate with but we need to find a way to provide it with better servers or limit the number of traders on his exchange.

Ethereum has such great technology behind it and it's unfortunate to see servers like Coinbase or even polo not able to handle the crazy amount of traffic. Puts a bad rep on not just the exchange but ethereum itself. Hopefully they figure out a solution!

This is part of the growth story. The fact that we're facing these overloads indicates there is a lot of room to grow and these are all temporary setbacks. I see it as a very positive signal for the mid to long term :)

Yes, because of these overloads about the ether began to think badly, and it fell in price: (

If Coinbase coud keep the site running when things get crazy I believe we wouldn't be having nearly as much bad press. However at the end of the day all the bad press in the world wont stop the blockchain revolution! Be prepared and don't forget about your precious metals for extra hedging!

  ·  7 years ago (edited)

The magnitude of this crash might indicate that there are big whales out there able to initiate such an event and that that there are high frequency traders who can push the crash further to almost 100%.

Although the market did recover one can ask if some market regulation might be desirable such as circuit breakers to stop a free fall. A circuit breaker between 5-10% like in the regular stock market might be too much. But a breaker at eg 40% might be good on the mid long term.

I am not pro market regulation but there might be a day that the crypto market becomes very nervous and a major drop like this might then not recover and initiate a major collapse of all cryptocurrencies

A circuit breaker would be a start but given how fragmented the crypto scene is, there should be something. Unlike the stocks that have major markets, Crypto has dozens and dozens of exchanges with new ones coming in monthly. That creates very thin books. I know many people do not think gdax has any blame in this but I disagree. They know how thin their book is and should have systems in place that spread a market sell larger than the book across some time rather than just allow someone to dump it all at once. Unlike other markets where shares have been spread far and wide over decades, crypto has a majority in very few hands. Adding to that the fact that millions of whatever have been stolen, hacked, etc and the anonymous nature of it all, it seems mind blowing that an exchange would allow a market sell above their order book. Anyone trading on margin should know the risks but those with stops were affected as well. In gdax, the stop-limit is hidden under the "advanced" link and maybe it shouldn't be. I actually do think they have some duty to their customers, all of whom pay them fees, to make sure a malicious player is not able to manipulate their system, crash the market and buy individual's assets for pennies. Either way, sure we will see this happen again. It is unavoidable with this many exchanges operating in the same, small, space.

Nice post! And indeed the exchanges should start to implement certain controls in the future. Some countries are starting to legalize bitcoin now and the next step is probably to start regulating it. I wonder if this will only go fast enough before the market blows itself up one one day.

Being a crypto learner . I got this news Yeasterday . It is really surprising for me that I was not available at the moment . If I was there I will definatily buy all the ETH coins from the stock but I was sleeping just another bad luck it is goood that your porviding informative blog posts .

My Name is Sophia Olive I am the learning the differnet methodlogy of working on crypto trading and get myself fully involve into it . Appfecited Your Work

I wouldn't lose any sleep over it. It was a flash crash meaning the price dropped in a second. You would not have been able to actually buy at .12 cents or a $1. The people that did already had their buy orders in prior and truthfully, I would not want to be them at all. I am pretty sure the US government, IRS, etc. are trying to figure out who they were and will be going over their financial records with a fine toothed comb especially since many suspect market manipulation.

Hey your eleboration regarding this is really apprecite . It is good to see people like you who use to explain each matter throughly . I might be in touch with you and will follow you in it. I think Your a expert Steemit you can check my post My Name is Sophia Olive and Guide me in a proper way how to work on steemit

Oh man. Imagine being able to pick up some ETH for less than a dollar. :o

Same. My question is, If you had a buy order set at lets say $15 ... would it be triggered?
Its the second time I see ETH crashing like this, It could happen again.

Anyone knows if it would be triggered? Or the system goes down and nothing really happens more than FUD ??

Thanks in advance !! :D

I guess it would. maybe it's worth sticking in a couple of orders ;)

Absolutely!! Nothing to lose I guess...

I just checked on coinbase, and as I write this the ether is 329; somebody is able to crash the price so they can buy in low and then sell again at the top, this smells just like the HFT algos on stocks, and it is FRAUD

I doubt anyone's orders, other than those orders of whoever it was who came up with the brilliant idea to wipe out all the stops set on the various exchanges, were filled with "preset" limit buys. It's the advantage the big playas have over the ave Joe. Now that we "know" it can be done at any time it would be best that everyone who is sitting on a sell stop in bitcoin or any other crypto cxl their limit orders. The whales in the "actual" market have "complete" control over all price movement and the technicals (including the amount of volume being traded overall) tells us that the "ave Joe" buyers have all but dried up for almost a week now. I'd hate to get taken out with a sell stop on a bitcoin crash to say $1200. The ONLY buyers at a low like that would be the big boys. Then you are at the mercy of them forever if you happened to have bought at say $2500. At least don't get half your investment wiped out by a sell stop. CXL those orders and grin and "bear it" with great gnashing of teeth as the bottom will "obviously" fall out soon. Then pray you get even on your trade if you bought this "obvious" bubble that was the most blatant story of manipulation to come along in years.

Amazing. And it came back. Big profits $$$ :)

If I have a few dollars to spare in my account, I may just put a 'buy' order in for 50c. You never know, right?

Oh my god! Why this would happen? It is very crazy and uncomfortable man! I cannot believe it could be happened! I feel very uncomfortable for this exchange now. People who do margine there are very risky. They may lost their money very easily! I cannot accept it!

Whahaha breaking news from your bed, never saw this before. Great video!

I'm following all you crypto guys on here

Is it possible to put a stop order on 0.000 btc? I was thinking of trading like that a few moments ago. Like that - in a bull market - you can never loose whatever the market does - or am I wrong?

Great coverage of the event with this post. Keep at it! And thanks @crypt0

Something is going on. BTC dominance is back up to 40%. There was an 8 billion difference between BTC and ETh now it's an 14 billion difference.

I agree. I thought the price of ETH would slowly continue to go up because of people getting freaked out about the upcoming BTC fork. It will definitely be interesting to see what happens with the price of BTC and ETH from now until 8/1.

That was a crazy day, but who on earth had a buy order for 0.10?? Maybe somebody forgot about it years ago lol

spot on hahaha, nice meme

its all good as always just a few moments later!
sometimes its better not even knowing whats going on!

so true!

I've been reading about ICOs dumping large amounts of shares on the market. I'm going to set some hooks.

Wow. Somebody tell me if I am wrong, I am just guessing that this did not affect those that are just holding on to their ETHER. Or am I wrong?

No you are fine

Thanks.

Unless the overall price now falls, because of fear over the value of Ethereum. Someone was willing to sell off 100K ETH today, with no intention of maximizing the value. Basically the seller intentionally triggered every order at the Coinbase GDAX exchange.

I appreciate the clarification. I have been on Steemit since January with my other account ( @troyvandeventer ) and I am still confused with cryptonology....I made a new word. Some of it reminds me of what they tried to teach me in my Economics class back in High school, but that was back in the stone age.

No but only because of the quick rebound. Before this video, I had no clue there was even a significant drop in the price of Ether.

You need an upvote here! Follow back

Now the real question is: To buy or not to buy...and wait to see if those who got it cheap during the snafu dumps it and drives the price down for real.

Really enjoy your content, Crypt0, very informative

Considering there are going to be more ICO's and also assuming that they will be irresponsible with their contribution period, ethereum will have major problems for the next 4-6 months. The network isnt capable to scaling itself just yet. We must not forget that this is basic technology when it comes to the functional requirements. It wasnt magically created to magically solve any problems it faces. This whole madness around people just saying it will shoot 400+ etc etc... is honestly worrying. Because it is based of no knowledge.
Remember, market can only go as far as the technology can handle it.

Now that I have gotten the ranting out of the way. A good sign of an ICO I saw was CIVIC. They issued tickets to people which would avoid congestion. That is a very responsible way of doing things and you can tell they really understand the network. I was thoroughly disappointed with STATUS. Someone who has received $380M had no idea what their bidding would do to the network? I think it shows a lack of planning and in depth awareness of the Ethereum Blockchain.
Hopefully ICO's will realize that for them to survive, they must work in a manner which will not harm the network and must take actions which will harness the network rather than damage it.

And when it comes to predicting the price, I am a novice. But from the trend and based on the situation with the scalability of this technology, I would say it will take about 1-2 months for it to cross $350. A very good thing is that a tech giant like microsoft is backing this. So coming up with good solutions should not be a worry.

Cheers

A penny? But I see Ethereum at over $300 ... ???

I really enjoy watching your videos, Crypt0. They are very informative!

I wonder if this event is tied to the Ethereum split early in development, a lot of hurt feeling there. Everyone fears a this type of event when a coin is significantly pre-mined/pre-owned. A similar event could happen if the Satoshi BTC wallet ever cashes out. It is huge, and was earned during BTC development when BTC=$0. Lets hope that the private key was destroyed to protect the currency as a whole. Time will tell. As far as I know, the only currency with stakeholders locking funds is DASH, where 4500+ master nodes have staked 1000 DASH each. Effectively locking away 4.5million DASH of the 7.4million mined so far.

Dude etherium is ran by the elite globalists

Definitely!! I say that in alot of my stuff. Following you dude

I never believed in Eth. I don't like that there is not a finite amount and that it is inflationary in basis. Probably cost me money, but I'm happy sticking to BTC and LTC. I would like to them as the top 2.

I agree man following you

Awesome bro! Followed back. Looks like LTC and MIT have teamed up and have a big announcement coming up August 1st. I'm loving LTC right now.

WOW

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NICE!

Nice information for eth

I do not think the ether will crash, everyone panics because the blockchain to a bit bug but the developer is excellent and will solve this problem

looks to me pretty much that this szenario was manipulated and i prefer
the low risk trading exmpl. penny stocks :)

Cheers buddy

Thank you for taking your time to post! Very good info.

This is what we would expect governments to be doing to kill trading and confidence in coins. I have open positions on Etoro with a stop loss of $150 and they are all still intact.

Thanks for sharing this video and your nice explanation on what exactly happened.

cheers

great update.... :)

Cryptocurrencies like bitcoin, dogecoin, litecoing they are most likely valuable nowadays ..

A historic moment! Coolest quote i read on Twitter on this

" I'm not worried, but this #ethereum chart is definitely 1 for the history books. 1 day you're kids will be studying it in their #Crypto101! "

crypto exchanges should put measures in place to prevent this flash crash thing

What........ That so scary

  ·  7 years ago (edited)

Not sure if i should be happy or scared

That's why I always put buy order at lower price in case a black swan thing happen, it happened to bitfinex last month and bought some cheap eth.

Dat bed news! Looking great as always Omar!

Wow, just another exciting day. We are lucky to be involved while this all happens. Never a dull moment.
Crypt0, have any thoughts on Stratis?

buying on the dips.. if it keeps going down the profits will be huge knowing its going back above 400 quick!

@crypt0,
oh that Great Job Done By coinbase.
Coinbase is reimbursing losses caused by the Ethereum flash crash.

When you margin trade you borrow funds.
It does not really matter if you intentionally put a stop loss or not, the main task of GDAX in this case is to protect the person who lend you money.

This is what happens with unregulated free markets.

Let's not be hypocrite and ask for something we don't really want, or assume the real risks of what we do.

As some mentioned here, imagine those who had a symbolic buy order at 1$ or less...

Hope this helps us all learn for the future!

I was not affected but i feel sorry about all of those poor people that lost money. Stay positive.

Hey, You are truly dedicated to giving us news when you even do them from bed! Thank you SO much for the update!

Just followed you,thanks for updating.......

great, bought Ether yesterday.good update. Thanks for the post.

That a bad fall.......
keep us informed ......
hope it will be sunshine like it is after the dusk....

WOW and thank you for the info

That is too silly to believe in such information because Ethereum has its strong foundation linked to Bitcoin. For Ethereum to be crashed down to a penny, unless Bitcoin goes first.

Oh man, thank you for the information, I thank you very much for the good

Amazing! Thanks for a crazy news

Thanks a lot guy...

This is what I get for being a lazy p.o.s. and sleeping. Missed out on millions for something I should only be doing once every few days if I want to live. Smh 😐

some devastated folks i am sure!

thanks for the video ;) good informations

well nothing can go up forever most knew it was going down and yes it will go back up

Ether is dropping today great day to buy crypto

lol

This is scary, I remember when this happened on GOX back in the day. I wonder if they will honor those .01 buys?

wow

nice post thanks

Thanks and good job :)
I wish i have all these upvotes and comments on my posts :(

You have amazing dedication to keeping us informed! Thank you!

TAU CHAIN >AGORAS. taking over real soon.

Thanks for a crazy news :D

Hope this helps! interesting video, did not know about this.

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jaybird

Give it some time! It will go up again!

So Omar, what do you think about the NVO ico? A decentralized crytocurrency exchange?

Be me... leave a buy order open for shits and giggles at 15 bucks......

This is seriously fucking crazy.. I wish I bought some of that 0.01 eth

  ·  7 years ago (edited)

this is bad news not good

I wonder who the lucky people where that got it for pennies they are rich now.

Wow this scares the hell out of me. If it can collapse that easy, doesn't the entity of this illustrate the point that only a few major players control all of the ether? It scary that only a handful of people can make or break your portfolio

I sure am glad i wasn't trying to sell any of my ETH and has a sell order in when that crash happened that could of been devastating.

This is insane! I encountered something similar in Bitfinex for XRP where I sold at Market and I was done at a ridiculously low price, after which the buy and sell rates went back to were they were seconds before that. Lesson: never trust the exchange to decide the price for you.

It is a bad news

Definitely was a little shaky yesterday, sure hope ETH comes back. I have a good thing going with my mining business. You can check it out here:
Check out my blogs here:
https://steemit.com/ethereum/@vegasbitcoin/are-you-making-over-usd100k-dollars-a-year-mining-crypto-s
and here:
https://steemit.com/ethereum/@vegasbitcoin/13-6gpu-ethereum-mining-rigs-set-up-pictures-overall-costs-and-apps-that-i-am-using
You were upvoted, continued success here.

Really enjoyed the info. Looking forward to future posts.

dimenso

I peronally think ethereum will be biger than bitcoin check this out guys https://steemit.com/breakingnews/@egzon/ethereum-will-be-bigger-than-bitcoin-what-do-u-think

so lucky i got my eth to btc for quite awhile :D

I was watching as it started and almost panic sold! Glad I didn't......would not have been able to since the site went down shortly there after!!!

Thanks for a great recap of the Ethereum market today... It was an awesome day for Status ICO, but appears to have been an early trigger for the Ethereum chaos... Promoting you in a big way! Please reciprocate by following and promoting. Thanks! @thoughtchain

That was insane,that was scariest that I've seen in this crupto platform

So was it possible to buy in at a penny as an outsider looking in, or did you already have to be in the system to pick up that deal of a lifetime?

Amazing information...

Hey Omar, thanks for all your content have been following you on YouTube be for a while but have not really subscribed. Just joined steemit and thought I'd at least thank you

GDAX is a really bad exchange. There is no liquidity. My believe is that a big percent of people just open accounts to buy their initial crypto coins and do not trade anymore. The rest of the people can not make a real market as the books are very thin.

Wow some people probably picked up some dirt cheap ETH. Wish I could have been one of those lucky few.

right!

wow $2700 crazy :O

Some people for sure got their hearts to stop for a bunch of time. Wow, this is so insane!

One question: is this something that's going to happen more often in the future ?

Thanks for keeping us updated! That takes alot of time, effort and dedication! I hope to be a awesome blogger like you someday!!

LEGEND_20170623_075611

I want to say that this is partially fake news. The maximum it hit was 13 USD. I do appreciate your attentiveness! :D