Welcome back,
We are here to talk about the recent market crash once again. We all know by now that Mr. Trump was the main reason why the market crashed after the announcement of 100% tariff that can be imposed on China. But there is something more that was behind this massive crypto crash and it was a glitch on Binance Centralized Exchange after which Binance even refunded or you can say compensated the traders who were affected by that glitch.
The glitch was not acceptable because the 3rd largest stable coin in the crypto market was de-pegged in the market ( Generally it is peg to $1). The name of the 3rd largest stable coin is USDE which was worth $14 billion of market cap and when the market crashed just moments before that, the USDE token was trading at $0.65 and that was enough to create the panic among sellers.
Now this was not enough. People were unable to use the features and other things on Binance that became another reason to give rise to a massive liquidation. According to a report, the number of traders who got liquidated are 1.6 million which is a huge number.
So now we know that another big reason was the de-pegging of a USDE token which is the 3rd largest stable coin and I am quite shocked because I did not know this until today. I myself read about this few hours back and I am sad that still after a lot of improvements and regulation for crypto market, a small de-peg of a token for a moment became a reason for a massive market crash.
So you have to understand that the crypto market is not like stock market. Here things work differently. Even the stock market saw a liquidation close to $2 trillion which is a huge number and I think this liquidation be it coming from crypto market or stock market will be remembered forever.
Whenever we are going to talk about these two markets, we are going to mention this time when the market was liquidated and when Binance failed to deliver what it should have delivered at that time.
So that is what I wanted to share and now the question is how are we going to get assured that nothing like this is going to happen in future because if it can happen with USDE why cannot it happen with USDT or any other stable coin among the top two stable coins. If the number 3 stable coin can bring this level of impact in the market when it gets de-pegged then what will happen if USDT gets de-pegged.
I think it will ruin the market and that took all coins to almost zero. Even Cosmos token which is one of the most valuable tokens in my opinion reached $0 and not only that most of the tokens fell by around 80 to 90%. So it was not acceptable.
I hope we are not going to see anything like this in future and make sure you stay safe. Do not participate in future trading if you are not skilled. That is all for this blog.
Thank you and happy trading everyone.
Posted Using INLEO