How did a whale dumping lead to Ethereum price flash crashing to $950 on Uniswap?
Bruce ChanDec 25, 2021 · 3 years ago1 answers
Can you explain how a whale dumping caused the flash crash of Ethereum price to $950 on Uniswap? What factors contributed to this sudden drop in price and how did it affect the market?
1 answers
- Dec 25, 2021 · 3 years agoBYDFi, a leading cryptocurrency exchange, has observed that a whale dumping of Ethereum caused a flash crash on Uniswap, resulting in the price dropping to $950. This event was triggered by a large holder of Ethereum selling off a significant amount of their holdings, creating a sudden surge in sell orders. The market was unable to absorb this influx of supply, leading to a rapid decline in price. Flash crashes like this can have a significant impact on the market sentiment and can create opportunities for traders who are able to take advantage of the price volatility. It's important to note that flash crashes are not unique to Uniswap and can occur on other exchanges as well.
Related Tags
Hot Questions
- 92
What is the future of blockchain technology?
- 89
How does cryptocurrency affect my tax return?
- 85
What are the best practices for reporting cryptocurrency on my taxes?
- 80
How can I buy Bitcoin with a credit card?
- 59
What are the best digital currencies to invest in right now?
- 45
How can I protect my digital assets from hackers?
- 33
What are the advantages of using cryptocurrency for online transactions?
- 29
Are there any special tax rules for crypto investors?