Kraken: Ethereum price drop to $ 700 is not related to error


Get real time updates directly on you device, subscribe now.

The 50 percent drop in the price of Ether (ETH) for a short time on the Kraken exchange on Monday was caused by user sales, not a system bug. Kraken CEO Jesse Powell said this in a conversation with Bloomberg.


“We are investigating, but we see no evidence of a malfunction in the trading engine. It looks like the deals were done correctly, ”he said.


On February 22, the ETH rate on Kraken dropped to $ 700, although a few minutes before that it was about $ 1,600. On other exchanges at the same time, the price of the cryptocurrency also tended to go down, but on average it did not fall even to $ 1,500 in the market.

Reddit users have put forward proposals to organize a class action lawsuit against Kraken or contact the Financial Crime Service.


“I have lost my savings and cannot get an answer from a living person. I think they need to be paid compensation, or they risk losing all their clients, ”one of them shared. Another stated that as a result of liquidation of the margin position, his account had a negative balance of $ 120.


Powell suggested that the crash may have been caused by the decision of “an individual whale to drain its savings.” He questioned the wisdom of rolling back trades, but admitted the possibility of providing some compensation to affected users.


“Ultimately we can do something for these people. We are considering options, ”he said.

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.