A mistake from an unknown crypto
investor has seen the user buy Litecoin on the Paxos (PAX) trading
pair, triggering the buy orders which are placed all the way up to
$100,000 per Litecoin.
The unfortunate event was highlighted
by a Twitter user, Su Zhu, a cryptocurrency commentator and CEO/CIO
at Three Arrows Capital. The tweet read:
The purchase which was taken on the
Binance exchange is certainly a costly one. The trader bought the
Litecoin at an overpriced value of $100,000, way over the usual
trading price of $91. In Fact, the purchase was 1000% times higher
than the usual price.
Many see this as a certain error of
judgement by a wealthy trader, who instead of using Tether, the most
popular US Dollar backed coin, they went with Paxos. Paxos Standard
(PAX) is a regulated dollar-anchored stablecoin that was launched in
However, this is not the first and it
will neither be the last time a grave error like this has been made
in the crypto community. The Kraken exchange had a similar situation
with their Bitcoin price. Bitcoin had a flash crash, a term that
refers to a very fast decline in the value of an asset, from $5400 to
about $4400 because of a similar error.
reports, WAVES also had an abrupt flash crash in April, forcing its
price extremely low. At one time, WAVES was trading at around
$0.00052 or 0.0000001 BTC before returning to its regular price.
These events can have positive and
negative ramifications for those involved. If you buy small orders,
this price drop could be a fruitful time should you buy at the right
time. However, if you are an unfortunate soul who has made the
mistake or bought at a higher price and were looking to sell, these
events could really mess you up.