The crypto market is highly variable and assets like Bitcoin, Ethereum and EOS experience wild price fluctuations. In stock exchanges where cryptocurrency margins are traded, these wild price fluctuations are further strengthened by investors trading on a 100x leverage. On Friday, a crypto margin trading platform experienced some strange behavior that caused flash crashes and flash pumps in the various crypto assets available to trade on the platform. Recently, investors managed to buy Ethereum for $ 0.33 and Bitcoin for $1.
Ethereum was purchased for $ 0.33 and Bitcoin for $ 1!
A technical problem with Amazon Web Services (AWS) caused a wild crypto flash crash on the Singapore-based crypto exchange BitMax. Overnight, BitMax traders saw the Ethereum for less than 33 cents and traded at that price. EOS rose to $ 100, and some lucky crypto investors were able to buy Bitcoin for $ 1 per BTC in the USDC trading pair. Litecoin was another affected entity. While these lucky users felt like they had fallen into a treasure, traders on the other side of the transaction sold an asset worth $ 10,000 for just one dollar.
Some believe that the situation is a real risk when trading on these platforms using leverage, and those affected are currently thinking black and white. But clearly, this is not a general problem or a situation for any crypto currency exchange or platform, and investors do not deserve the loss without any mistakes. The leveraged transaction, as defined by Investopedia, is the use of “borrowed money için to potansiyel increase the potential return on investment. The use of leverage can increase the profits of crypto investors but also their losses 100 times.
Combining this with a 20% or more price wave often represented by crypto assets such as Bitcoin, Ethereum and EOS can be a recipe for both disaster and incredible fortune. Although no other platform had the same flash crash and mega pump behavior, BitMax wasn’t the only one on Friday. Binance CEO Changpeng Zhao tweeted his firm’s problems due to AWS outages. The problem was caused by an outage in Amazon Web Services cloud solutions. Amazon regularly provides cloud solutions for various crypto-related websites and companies such as DNS hosting and more.