So what exactly did happen to Ethereum.
That fateful day in June!
The Super Hyped Poster boy of the New Wave Smart Contracts & Cryptocurrencies.
It was on it's way, To Infinity and Beyond!
Then came,"The Flash Crash," which dumped the price from:
$320, way way down to $0.10.
Yes, you have read it correct, 10 cents.
Not a nice experience to endure.
For anybody.
"WTF," I can hear you say.
Welcome to the wonderful crazy f*cking world of Cryptocurrency.
I use Blocktrades to buy Crypto as I could never get into Poloniex.
Poloinex just kept rejecting my password. So I've never used it. (just as well it seems.)
On the day Ethereum crashed, it just wasn't available to trade on Blocktrades.
My son contacted me, (he is out of the loop on Cryptocurrencies,)and said he had read about the Flash Crash with Ethereum.
And asked, was it not time the exchanges were covered by,
The U.S. Securities and Exchange Commission (SEC)
So one, it got a lot of coverage.
Outside the normal Crypto world.
And two, people again are running scared and wondering, is it safe.
Is this Crypto Craziness Safe?
I explained, that the Fabulous Bitcoin Winklevoss Twins,
famous for their, "We woz f*cked over by Zuckerballs,"
[They settled in court. But were still vocally unhappy about everything. for $20m cash and Facebook stock which at the time was worth around $45m. ]
Their Bitcoin exchange,"Gemini" is an interesting setup as its run like a bank.
Heavy on the regulation.
The Bitcoin Winklevoss Twins failed to get approval from, The SEC.
[U.S. Securities and Exchange Commission]
The whole idea behind all of the Blockchain Cryptos environment is the idea of decentralization.
I was saying that maybe SEC approval is not really wanted, by the Crypto Community as:
The Blockchain is being pushed as, no banks, no middle men.
Crypto Currencies do not play well with the US Banks.
Or all the worlds financial middlemen;D~
But back to Ethereum and that, Crash Flash Fire.
"The flash crash was the result of someone placing a multi-million-dollar sell order at market price, meaning ETH would change hands at whatever price bidders were currently offering until the entire order was filled – no matter how much lower the price was than the current price of ETH.
Filling this order caused ETH prices to instantly slip 30% to 224 – which in turn caused 800 stop loss orders and margin liquidations, which further drove the price down, to as low at 0.10."
Source:
https://techcrunch.com/2017/06/24/coinbase-is-reimbursing-losses-caused-by-the-ethereum-flash-crash/
It was caused by the very weak infrastructure that surrounds the actual act of buying and selling of Crypto Currencies.
I mean its using the same buying and selling automatic tools as the Stock Exchange.
Puts, Holds and Sells and all that Jazz.
Which we know is rigged in favor of the big boys.
The big selling point for the Blockchain is, "It can never be hacked."
But every road leading into it can be Hacked and Packed with Pirates, Con men, Bounders and Cads.
The Ethereum Flash Crash, (we are told,) was one big sell order which caused a Domino affect.
As multiple sell orders chased non existent buy orders.
The Blockchain business is sound, but it is a bit like Walt Disney building his Family Friendly Safe as Houses Disney World.
And then realizing there was not enough roads to take the visitors both safely in and out again.
And anyway, all the roads where swarming with highwaymen.
Not many people are going to venture there. No matter how safe or Family Friendly it is.
This type of crash happens all the time within the Stock Exchange System.
As the Players play the system.
A system that is covered by the SEC.
Inside information is rife.
And the only ones that go the jail are the small fry who get sacrificed.
How our Blockchain Gurus can program us out of this mess will be an interesting experiment.
I mean if I want to sell all my $$$Millions of Ethereum or Bitcoin in one fire sale.
Who is to stop me?
Steemit have their 13 weeks of Power Down for selling Steem.
Which is a good filter and works after a fashion.
But the big & little movers and shakers want to buy and sell stocks/shares & cryptocurrencies by the minute it seems.
So this will not fly with them.
Either way there will need to be a lead on, into the Blockchain that is just as un-hackable.
Or just more stable. More safe?
This will not be that last time it happens.
We may see another squeeze with the coming Bitcoin Hard Fork.
As the stampeding Bitcoin crowd get shunted down a Bitcoin safety fire channel.
"All sell and no play, makes Jack a dull Buy."
As this type of market has no experience of the sharp practices of the Stock exchange.
In,"The Flash Boys," by Michael Lewis, he explains the lengths these guys will go to pull in a $$Million or 50
"They went and placed servers within a long cable length of the Exchange servers,
to gain a couple of nano seconds head start on their rivals."
These guys will rip into the Crypto market like Wall Street Bulls in a China shop.
Ethereum went from $320 to 10 cents in the nano blink of a Computer generated sell order.
This could happen to any of the string of Crypto Currencies on the markets.
Unless we get another Crypto break through which can prevent it.
Or maybe everybody will wise up and stop thinking, the Blockchain is the second coming.
And accept the fact that some days we win.
And then some days we are all going to get scalped.
Just my 10 Crypto Ethereum Cents as I see it.
Though you have to admit.
It's still better than any soap opera or the movies;D~
Footnote Update:
The Ethereum price went back to hover around where it was before the crash.
And Coinbase is stating they are reimbursing losses caused by the Ethereum flash crash.
We shall see.
What Is Ethereum? An explanation of Ethereum by its former CCO Stephan Tual, from 2014:
