Polkadot Futures Down 99% In Minute

During overnight trading on Binance Futures, Polkadot quotes dropped 165 times in a minute.

Trading volume this weekPolkadot futures reached $ 573 million and overtook Litecoin to climb to fourth place. On Binance tonight, the DOT futures price fell from $ 33 to $ 0.2, quickly returning to its previous value.

The collapse of futures led to the liquidation of $ 48.6 million in margin positions.

Binance representatives commented on the situation:

The fall was caused by the rich but inexperienceda trader who decided to take a huge short position in the market, buying out the entire buy order book, which was followed by an equally huge reduction in stop orders only in Dot CM perpetual. Since the short has no size limit, it collected all the liquidity to buy and put out a candle at the moment before 0. This led to the fact that there was not enough margin on its account, and a giant IF position was opened. The user has been eliminated and the market has now stabilized the price.

According to bybt, the inexperienced short trader was liquidated for $37.33 million.

Since the beginning of the year, open interest in DOT futures has surged 690% to $ 575 million, making it the fourth largest derivatives market after Bitcoin (BTC), Ether (ETH) and Cardano (ADA).

Against this background, institutions are increasingly investing in altcoins. Last week, FD7Ventures, a Dubai-based company, decided to allocate $250 million to the development of the Cardano and Polkadot projects.

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