One of Ethereum’s biggest competitors, Polkadot’s (DOT) futures on Binance had a “flash drop” on Friday. During this decline, which caused the DOT term to depreciate by 99%, a total of $ 18 million was traded.
Polkadot (DOT) has valued 10 times since August 2020 and has grown to $ 33. DOT futures on Binance dropped from $ 33 to $ 0.20 on Friday. The so-called “flash fall” event lasted less than a minute.
$ 18 million in one minute
The “flash drop” in the stock market was detected in the early hours of Friday morning. While Spot DOT transactions proceeded in their normal course, it was seen that the DOT contract of the Coin-M type fell to $ 0.20. In this 1-minute period, a transaction volume of 18 million dollars has been created. A Binance executive spoke to CryptoPotato and said:
“A user with a large position placed a single stop order in the market that gave rise to this candle. Other users were not affected by the incident. … We will control the size of stop orders more effectively to prevent such events. ”
These contracts, referred to as coin-margined, are evaluated with a cryptocurrency such as bitcoin instead of a fiat currency such as a dollar. According to CoinDesk, the user that led this candle had entered a larger stop order than any open bid in the market at that time.