Key Points
- •Flash crash of Cosmos (ATOM) on Binance; price hit $0.001.
- •Price stabilized at $3.08.
- •Market volatility and algorithmic issues suspected causes.
A flash crash occurred on the Binance exchange, causing Cosmos (ATOM) to plummet to $0.001 at 5:00 AM on October 11th before rebounding to $3.08.
The incident highlights ongoing volatility and potential vulnerabilities in crypto exchanges, affecting market confidence and prompting discussions on algorithmic and liquidity issues.
Cosmos Flash Crash: Price Plummets to $0.001
Market observers have speculated that algorithmic errors or liquidity issues might be behind the flash crash. “Flash crashes often come down to algorithmic issues or liquidity problems,” noted Jae Kwon, Founder of Cosmos. Community members have expressed concerns over the reliability of exchanges during such volatile periods. Thus far, no official statements have been issued by Cosmos or Binance. Flash crashes, similar to this one involving Bitcoin on Binance.US in October 2021, indicate recurring challenges faced by crypto exchanges.
Current data from CoinMarketCap indicates that Cosmos' market value now stands at approximately $3.10. The market cap is around $1.46 billion, with a 24‑hour trading volume reported at $421.7 million, representing a spike of 268.18 %. Notably, the token’s price remains depressed across various time frames, showing decreases of 23.55 % over the last 24 hours and further decreases over longer periods.
Experts from Coincu note that flash crashes highlight the inherent instability that can arise from algorithmic trading. Further regulatory attention may result, focusing on ensuring greater transparency and stability within these systems. The market's ability to rebound swiftly following such crashes often suggests robust underlying infrastructure, though vulnerabilities persist.
Historical Context and Market Data Analysis
Did you know? The flash crash event for Cosmos (ATOM) resembles a similar occurrence with Bitcoin on Binance.US in October 2021, highlighting ongoing market vulnerabilities.
Market observers have speculated that algorithmic errors or liquidity issues might be behind the flash crash. “Flash crashes often come down to algorithmic issues or liquidity problems,” noted Jae Kwon, Founder of Cosmos.
Experts from Coincu note that flash crashes highlight the inherent instability that can arise from algorithmic trading.