Kraken CEO Says Ether Flash Crash Down to Trading, Not System Glitch
Jesse Powell suggested an ether whale might have "decided to dump his life savings."
The CEO of the Kraken cryptocurrency exchange has said a sudden 50% drop in ether's price on the exchange Monday was caused by an extreme sell-off and not any system glitch.
- “There doesn’t seem to be any evidence of a trading-engine malfunction," Jesse Powell, told Bloomberg Television on Tuesday. "It seems like trades processed accurately.”
- Powell added that the crash could have been caused by a single big investor who "decided to dump his life savings."
- Ether crashed to $700 at 14:20 UTC (9:20 a.m. ET) Monday, having been north of $1,600 only minutes earlier.
- The drop occurred amid a broader sell-off of crypto assets that saw ether drop as low as $1,546, according to the CoinDesk 20, but nothing as dramatic as was witnessed on Kraken's platform.
- When contacted by CoinDesk soon after, Kraken noted ether prices had dropped on multiple venues, but did not comment on its far lower price.
- Kraken is unlikely to roll back trades, Powell advised Tuesday, but hinted at offering some kind of compensation for clients affected.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.