In yet another instance of just how volatile the cryptocurrency markets can be, the price of ether plummeted to $13 on June 21st on cryptocurrency exchange GDAX.
The steep decline, observed at roughly 20:30 UTC, had an outsized effect on the market for the digital token that powers the world's second-largest blockchain. Overall, the value of ether fell to this price after trading at as much as $365.79 earlier in the session, according to GDAX data.
As a result, the flash crash represented a more than 96% decline from the daily high.
The move was so severe that Coinbase, the US-based operator of the exchange, opted to disable trading of the ETH/USD pair and block withdrawals of ether.
Coins announced to credit these customer accounts using its own funds and no other customers will be affected. Lucky customers who were able to buy Ether during the flash crash will be able to keep them, with GDAX honoring these trades.Compensating customers who lost money during market volatility may lead to others being lax with placing stop-loss orders. Investors have to be cognizant of the risks they face while dealing with volatile assets like cryptocurrencies.
Im ok with the currencies being unpredictable but not the service providers like coinbase. I mean what do I pay the huge fees for?
yeap! I agree, It's a huge trust dent on exchange services! Hope these guys, get rid of these problems and regain investor's trust.