{"id":29936,"date":"2022-06-14T15:56:41","date_gmt":"2022-06-14T19:56:41","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=29936"},"modified":"2022-06-14T15:56:53","modified_gmt":"2022-06-14T19:56:53","slug":"crypto-crash-chain-com-loses-96-of-its-value-in-24-hours","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/crypto-crash-chain-com-loses-96-of-its-value-in-24-hours\/","title":{"rendered":"Crypto Crash: Chain.com loses 96% of its value in 24 hours"},"content":{"rendered":"\n

Deepak.eth, CEO of Crypto.com<\/a>, believes a single large margin call appears to have exacerbated the flash crash experienced by Chain.com.<\/p>\n\n\n\n

\"Crypto
Crypto Crash: Chain.com loses 96% of its value in 24 hours<\/figcaption><\/figure>\n\n\n\n

On Tuesday, the value of tokens issued by Chain.com (XCN), a cloud blockchain infrastructure provider\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>, unexpectedly dropped by more than 90 percent. However, they were able to recoup the majority of their losses later in the day.<\/p>\n\n\n\n

Massive drop in Chain.com's value<\/h2>\n\n\n\n

In a post-mortem study that was provided by Chain.com, the company stated that a market maker and API problem began to cause XCN to decline in huge percentiles around 1:00 pm SGT (5:00 am UCT), which is when the analysis was conducted.<\/p>\n\n\n\n

During the course of the event, similar bids were trapped via API orders, which resulted in further downward selling pressure owing to insufficient liquidity and margin calls.<\/p>\n\n\n\n

The developers at Chain.com spoke with exchanges and market players and determined that the issue was not due to a breach or exploit at around three o'clock in the afternoon (seven o'clock in the morning UCT), at which point prices began to recover.<\/p>\n\n\n\n

Deepak.eth's take on the value drop experienced by Chain.com<\/h2>\n\n\n\n

A single huge margin call appears to have contributed significantly to the severity of the flash crash, as stated by Deepak.eth, CEO of Crypto.com. <\/p>\n\n\n\n

Tokens <\/a>to the value of up to 500 million XCN ($42.24 million at the time of writing) that were acquired through leveraging were sold off in a relatively short amount of time.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/dt_chain\/status\/1536637316638326785?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1536637316638326785%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fchain-com-tokens-lose-96-of-value-in-24-hours-due-to-flash-crash-before-recovery\n<\/div><\/figure>\n\n\n\n

Alterations in the supply and demand of a token do not always have a direct and proportionate impact on the price of that token.<\/p>\n\n\n\n

It's a prevalent misperception that a single huge deal or a series of hefty buy or sell orders can't alter a token's price. Not always, especially in low-liquidity conditions.<\/p>\n\n\n\n

The price of Cope's token plunged 77% as its developers said they needed to sell tokens “to keep dev going during this hard period.”<\/p>\n\n\n\n

Dev.eth revealed this a month ago. Due to little liquidity, the developers only needed to sell 10% of the COPE tokens in circulation for the price to fall.<\/p>\n","protected":false},"excerpt":{"rendered":"

Deepak.eth, CEO of Crypto.com, believes a single large margin call appears to have exacerbated the flash crash experienced by Chain.com. On Tuesday, the value of tokens issued by Chain.com (XCN), a cloud blockchain infrastructure provider , unexpectedly dropped by more than 90 percent. However, they were able to recoup the majority of their losses later […]<\/p>\n","protected":false},"author":13,"featured_media":29938,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,21],"tags":[10615],"class_list":["post-29936","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrencies","category-news","tag-chain-com"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/image-113.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/29936","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=29936"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/29936\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/29938"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=29936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=29936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=29936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}