KRAKEN cryptocurrency exchangers require compensation for an unexpected price cutting of digital assets on the trading platform. They became local, since such sections of courses were not observed on other exchanges. Serious cost drawdowns of just a few moments led to a whole cascade - that is, the sequences - the elimination of the positions of marginal cryptotraders. In other words, they formally lost money because of the strange work of Kraken in the last few days against the background of a serious collapse of the entire market cryptocurrency. We tell about the situation more.
By tradition, we will begin with an explanation: margin trading is trading with the help of the funds you've leaving the stock exchange. Thanks to this, the trader can earn significantly more funds, because its position in this case will also be more.
However, the fund loan also significantly increases the risks. If the course of cryptocurrency goes to the other side of the specified percentage in advance, the trader will wait for liquidation. This is the process of forced closing the position of the trader of the Exchange, if its margin - that is, the coverage of the funds borrowed from the platform is not enough to compensate for damages due to price movement. In this case, he will not be able, for example, wait for a sudden drop in the asset twice: here his position will simply close, and the money will take. More information about marginal trading and its features can be read in our detailed manual.
I also recommend you to familiarize yourself with my personal experience of margin trading. Periodically, he ended with losses, because of what I was tied with the margin.
In the case of Kraken, the worst thing happened: the course of Etheruum suddenly fell significantly lower than on other sites. As a result of the position of traders closed, and they suffered damages. Since there were no such movements of the cost of an asset in other places, traders want to understand what happened and at least get compensation.
What is the problem with the Kraken exchange?
Recall, on Monday, February 22, the largest red day candle was formed on the BTC and ETH charts - that is, the designation of the collapse - in dollar equivalent in the history of cryptocurrencies. The cost of Bitcoin collapsed at least $ 9,500, having sharply dropped from $ 57,500, and Etherium asked $ 400, falling from 1940 dollars.
If you are a novice in trading, the concept of formation of Japanese candles on the chart we have already been covered in this article. She will tell you what candles are, from which parts they consist and what they say.
For clarity, you cite a schedule of the Etieth Course on the Coinbase Stock Exchange. As you can see, cryptocurrency did not fall below 1,300 dollars, which approximately coincides with the behavior of the asset on other platforms.
But this is the data with the largest American Coinbase cryptobyrus, and there were otherwise on Kraken. BTC and ETH collapsed much stronger on this trading platform. Moreover, Etherumer even had a few moments to touch the mark of $ 700, which was essentially two times lower than the course on other platforms.
In the channel called Krakensupport on the Social Platform Reddit, many traders immediately expressed disappointment, because because of this candle on the chart they lost money. Some of them even threaten to organize a lawsuit against the Exchange, while the user under the nickname U / DTK6802 claims that he lost most of its savings during the collapse. Here is a quote that cointelegraph leads.
That is, the trader believes that the Exchange is to blame for this situation, which incorrectly displaced courses due to unknown reasons. Regardless of the reasons, financial losses have already taken place.
The consequences for other traders even led to debts - for example, the Reddit social platform user under the pseudonym Goeers304 argues that now his balance went into minus. Here is his replica in which the Exchange Customer complains about the situation.
Despite the calls for Kraken users to pay compensation, there were already rumors on Twitter that the stock exchange is not going to be responsible for what happened. In particular, the user under the nickname Cannibal Kiwi reported that he had heard from technical support staff that they could not do anything with what had happened. It is noteworthy that something similar happened on the Nexo cryptocurrency exchange. However, the official account of the Exchange noted that such a sharp collapse of the price was fictitious due to failures, so the platform is ready to compensate for damages to victims of clients.
How to avoid similar problems? To do this, you need to follow the risk management rules, it is necessary to arrange the stop-loss order - that is, insurance from the collaps - and monitor the balance on its stock account. Remember: Margin trading is a very risky lesson, which without proper knowledge will lead to the loss of all the money on the deposit. Therefore, with him without the necessary experience and confidence it is better not to contact him.
We believe that this situation is only once again reminded of high risks of cryptocurrency trading - especially with borrowed funds and shoulders. Of course, someone thus earns seriously, but this method is not suitable for novice. In addition, taking into account what is happening, it should be remembered that trying to earn during sharp market movements is also very dangerous. So perhaps, such periods are worth it is better to repaid in the stelkins - that is, the coins that are tied to the dollar. So it turns out to maintain most of the savings.
An even more interesting can be found in our cryptocat of millionaires. There will also discuss other news from the world of blockchas and technologies.
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