Binance Futures Vice President Aaron Gong announced that an investor alone sabotaged the perpetual futures contracts on the ETH / USD pair. Gong announced that the exchange will go through some technical changes after this event is revealed.
An interesting event took place today at Binance Futures operated by Binance, which is shown as the world’s largest crypto currency exchange. According to the statements made by the manager of the futures exchange, a Binance user managed to sabotage the ETH / USD parity on the platform alone. Many people were hurt by this whale.
He sabotaged the liquidity alone
Binance Futures users recently noticed two interesting candles on the chart of the ETH / USD pair. Binance Futures manager Aaron Gong made a statement today in the morning and announced that ETH / USD transactions were sabotaged.
According to the information Gong shared, a single investor, who might be thought to be a whale, sabotaged the market both downstream and upwards. The Binance manager said they “thought it was a deliberate move”. This whale, which also made a loss while making this move, triggered many traders’ stop orders.
Exchange users reacted
Cryptocurrency followers on social media reacted to the fact that a single investor was able to influence the stock market in this way. One social media user in particular said, referring to this event, “that’s why it’s perp from Binance. you should not get a contract ”commented.
Another social media user said that whales can affect cryptocurrency prices in any way, and that it is independent of the exchange.
a whale can manipulate a price on any exchange, what you can do is set your stop loss to mark price not (last price).
— cryptoSha (@Mewz_Ashea) October 29, 2020
Binance management will go for technical change
Aaron Gong announced that the exchange will go through certain changes after this event. Binance will default to the mark price, not the last price, for stop orders to avoid such problems in the future. Thus, users who do not know the difference will try to prevent the use of last price.
The exchange will also activate the Price Protection mechanism. In this way, the stop order will not be triggered if the scissors between last price and mark price are much more open than normal. Gong also said that the increase in the number of market makers in the stock market and the increase in liquidity can also eliminate such problems.
We will invite and incentivize more market makers to provide more liquidity and orderbook depth, and should also reduce the likelihood of this happening.
— Aaron Gong (@AG_Binance) October 29, 2020