Bitstamp is one of the oldest in the industry. During its life it had seen a lot, but this time the old-timers were surprised by the trading bot, which literally “went wild”, and led to a massive price movement on several trading pairs and brought down the price for Litecoin.
According to the entrepreneur and co-founder of Bitstamp, Nejc Kodrič, the trading bot that performed “wild” actions belongs to one of the clients of the exchange.
The social networks actively discuss the data of CryptoCompare of October 7, where it can be seen that in just 15 minutes, the bot sold Bitcoin for 6 million EUR through the BTC / EUR trading pair. Such a large volume led to the fact that the price of BTC collapsed for a short time to the mark of 5000EUR ($ 5760).
However, in an attempt to rectify the situation, the bot then bought Bitcoin for the same 6 million EUR, which in five minutes resulted in a price hike to 6600EUR ($ 7620). Then again followed the sale to current prices in the amount of 5700EUR ($ 6,570).
Also, other cryptocurrencies suffered from the actions of the inadequate algorithm. The purchase price of Ethereum rose to 235EUR ($ 270), and the sale price fell to 123EUR ($ 141), after which it leveled off to normal 195EUR ($ 224).
The most significant damage was caused by Litecoin, where in five minutes the price dropped to 1.12EUR ($ 1.29), and then recovered to the current price of 50EUR ($ 57). Despite the fact that the time interval with the execution of orders took a few minutes, it was enough to panic in social networks, where they assumed a sharp exit of large whales from the LTC market or an attempt to manipulate.
