HUGE shake up on the Ethereum side of things this morning when the beloved cryptocurrency fell over 90% in a matter of minutes to prices as low as $13.
It's a sad day for hundreds of traders. Although Ethereum recovered in a matter of minutes, the damage caused is nearly irreversible. Many uneducated individuals utilize the margin trading in GDAX despite the agreement it is only designed for individuals with a surplus of millions of dollars. The flash crash this morning caused investors to lose entire positions when their stop orders were reached within a matter of minutes.
The potential culprits causing the crash are as follows:
- ICO's generated tons of ETH revenues for new companies, companies dumped.
- Someone sold 3M worth at once, causing panic.
- GDAX/Coinbase crashed.
The question that comes next: Did this damage the public's confidence in the cryptocurrency?
Time will tell. Until then, learn about the risks you expose yourself to, my friends.
What are your thoughts on today's events?
-Ellipsis