Polkadot’s DOT experienced a major flash crash on Binance’s COIN margin futures platform, which saw its price cut to $ 0.20.
The past few days have been somewhat challenging in the cryptocurrency market, as the entire capitalization has seen some $ 150 billion lost.
Adverse events followed the fall of Wall Street, as legacy markets suffered throughout the week.
Meanwhile, Bitcoin’s perceived correlation with the S&P 500 stands at a 5-month high that, of course, is reflected across the market.
A particularly peculiar thing happened on the Binance derivatives platform, Binance Futures. More specifically, the quarterly perpetual DOT / USD futures contract in the marginal COIN section of Binance Futures experienced a huge flash crash.
As seen in the chart above, the price fell from a high of $ 33,862 to a low of $ 0.20 in an instant.
This is called the flash crash event – an occasion when the price of an asset drops tremendously and then recovers instantly.
Dividing the graph into a 1-minute candle pattern reveals that the whole thing took no more than 60 seconds.
However, in theory, those who had their orders with a lower limit should have benefited from the immediate price recovery.
This is not the first time that something like this has happened.
As Webitcoin reported last year, ChainLink’s price flash crash fell on Binance.