Bitmex recently launched a new product called Quanto Swap Contract XRP / USD, a way for users to trade on the leveraged XRP / USD pair. However, yesterday the contract lost more than 62% of its value in a period of just 5 minutes, completely liquidating several users and even emptying some accounts.
In the broker's offer book for that pair, the price of the XRP fell from $ 0.32 to $ 0.14. However, this price movement did not happen in other indices and the problem was reported only at Bitmex.
The drop, more than impressive, wiped out several traders. Some were very upset by the situation and went to Twitter to express their anger at the derivatives trading platform.
One of them, called Marc de Koning, further stated that his stop loss was not activated, causing all of his cryptocurrency funds to be liquidated during the move.
WTF. FUCK YOU BITMEX. This is really not okay! My stop didn´t trigger and my entire bitmex account is fucking gone. Fuck you! pic.twitter.com/WHXbJoiTvL
– Marc de Koning (@Koning_Marc) February 13, 2020
When someone trades with derivatives such as Quanto Swap Contract XRP / USD, the person is carrying out a trade called leveraged trade. This means that your earnings are multiplied if the trade is favorable. On the other hand, you also have multiplied losses. This is considered one of the most dangerous types of trade in the cryptomercado, since the great risk of losing your entire balance in a few minutes is quite large.
XRP quote today – Updated table and technical analysis
Before the XRP / USD pair crashed on Bitmex during Thursday, the cryptocurrency was in an undeniably positive move. During the period, the annual return on the currency was around 70%. With that in mind, it makes a lot of sense for traders to be betting on long positions for the pair. This may have exacerbated the impact of this gigantic dump.
Some users even started a campaign to ask for a refund from Bitmex or would boycott the broker.
“My friends' accounts have been completely settled, this is a HIT. What the hell is this? Return the money to everyone who was liquidated immediately or we will boycott Bitmex for good! ”
@CryptoHayes @BitMEXdotcom #bitmex #xrp my friends whole bitmex account got liquidated, this is SCAM dude. what the actual fuck is this? give all the guys who got liquidated an immediate refund or boycott bitmex for good! pic.twitter.com/ROYzVM5T8i
– GJN tripleGGG (@gjn_crypto) February 13, 2020
Bitmex responded to trader Marc de Koning, stating that the platform investigated the event and found nothing out of the ordinary.
“The volume of stops being executed, together with the lack of liquidity in the order book, caused the price to fall quickly. We understand that price movements like this can be frustrating, however, there will be no refund in this case. ”
With that Bitmex stated that it will not return the investors' money and that everything happened normally, even with many complaining that the platform was the only one to present this problem.
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