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Price manipulation of Bitcoin [BTC] – OKEx announces rollback of futures contract data

Abhishek Anil

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Price manipulation of Bitcoin [BTC]- OKEx announces rollback of futures contract data in light of user manipulation
Source: Pexels

OKEx made public that a number of users performed unusual transactions to manipulate the price of BTC’s quarterly futures contract on March 30th, 2018, making it deviate sizeably from the BTC index. The OKEx team’s investigation revealed that users had closed huge amounts of positions at market price without considering its cost causing it to drop to unusually low levels.

They quoted the OKEx Futures Trading User Agreement by saying:

“6.2 OKEx reserves the right to enact  control over accounts if malicious price manipulation or any other pernicious wrong doing occurs. If required, OKEx reserves the right to close accounts, limit trading, halt trading, cancel transactions, and rollback transactions to eliminate any adverse effects in the futures market.”

OKEx has announced that to protect the interests of all its users, all future transactions will be rollbacked to 5:00 March 30th, 2018 (HongKong time).

After detailed evaluation, they have quoted:

“To prevent forced-liquidations due to price differences after the settlements in “bi-weekly” and “quarterly” futures contracts, we will rollback the transactions as mentioned, and all futures contracts will be delivered at 00:00 Mar 31st, 2018 (Hong Kong Time). Further announcement will be made if there are any changes in delivery time.”

Some of the rollback details include rolling back of all weekly, bi-weekly and quarterly future contract of all tokens to 4:47 March 30th, 2018 (HongKong time) for better risk control while it will be delivered. After delivery, all open positions will be canceled and holding positions will be closed at the delivery price.

In light of the incident, they have updated the “price limit rules” for future trading at 00:00 on March 31st, 2018 (HongKong time) for better risk control.

The rules are listed for existing price limit, after 10 minutes, premium/discount on Contract price and index price, First 10mins of all newly listed futures, the discount/premium calculated equals to 0, or deviates from the index price by 25%, new price limits, first 10 minutes of all newly listed futures, the discount/premium calculated equals to 0 or deviates from the index price by 25%.

OKEx has decided to waive off the transaction fees of future trading due to the inconvenience caused to its users.





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Bitcoin

Bitcoin’s volatility – an indication of growth or regression?

Biraajmaan Tamuly

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Bitcoin's volatility indicated to be a key aspect of its current success
Source: Pixabay

Market volatility plays a huge role in the financial ecosystem of assets and cryptocurrencies are regularly linked to its predominant effect. Whenever Bitcoin exhibits a rapid price movement in the market, the majority of the critics tagged the digital currency with extreme volatility and state that it would eventually lead to its downfall, since crypto assets cannot be trusted on a long term basis.

This assumption was recently widely questioned as data showed that over the last few months, the volatility rate had actually decreased for Bitcoin but the community continued to talk against the coin’s development solely on the basis of the crash witnessed by BTC after the bull run of 2017.

Pierre Rochard, a bitcoin enthusiast, recently spoke about the situation and stated, that the volatility might actually be one of the reasons why Bitcoin was starting to find prominent success in the market.

It was suggested that Bitcoin had been accumulating value over the years through various implementations and at specific time frames, short-term traders were causing an effect on the price, which would cause the “incidental price surge”. The price surge would then undergo correction and witness a fall but the price would continue to grow at a progressive rate.

The aforementioned reason can be backed by the fact that Bitcoin had indeed outperformed the likes of commodities like gold in the recent market analysis, and it was released that Bitcoin attained more profit in the long-term returns and risks asset trade in comparison to the S&P 500.

A recent data also exhibited that since 2013, any investment that included 5 percent Bitcoin to 95 percent fiat currency gathered more returns and lesser risk than the S&P 500; which also witnessed losses in 2017.

Twitter user @1Mark Moss indicated that Bitcoin was growing at it’s natural growth rate and stated,

“The volatility is the difference between perception and reality. And the reality is BTC continues to progress, just not as fast as the perception makes it seem sometimes… just part of the natural evolution.”

However, another user @JordiMorris1 explained that the people had more to do with the volatility and anything else. He said,

“The relationship of people towards Bitcoin is volatile. Bitcoin is predictible by nature, its production is stable independently of how crazy people go about Bitcoin. No sense to blame on Bitcoin.”





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