“Extreme” ethereum (ETH) selling caused yesterday’s flash crash to USD 700 on Kraken, according to Jesse Powell, CEO and Co-founder of the crypto exchange giant.
The CEO was speaking to Bloomberg TV, and claimed that his firm was “in the process of investigating” the incident.
However, Powell claimed,
“It could be that a single whale just decided to dump [their] life savings.”
Powell mused that the ETH crash was “probably not tied” to Tesla-related news, but conceded, “You never know what moves these markets.” As reported, this past weekend, Tesla’s Elon Musk said that “BTC & ETH do seem high.”
And Powell said that rolling back trades was an unlikely scenario, although he did not rule out compensatory measures of some kind could be in store for customers who were negatively affected. He added,
“You forcefully liquidated my position at a false price while the app and site were non-functional. You need to refund our money!”
@CamiRusso basically Kraken has not a lot of liquidity (retails).
— BaguetteTrader (@BaguetteTrader)
At the time of writing (14:31 UTC), ETH trades at USD 1,556, rebounding from USD 1,395, reached earlier today. The price is still down by 8.5% in a day and 12% in a week, trimming its monthly gains to 26%.
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