The user earned more than 3000% of the profit from the abnormal fall in the price of the BNB token. It collapsed 33 times in a short-term on a large trading floor
The Binance exchange token (BNB) rate on the Poloniex trading platform fell 33 times, from $ 27 to $ 0.8. It happened yesterday, November 26, paired with the BUSD stablecoin, also issued by Binance.
Photo: Poloniex.com
The reason for the abnormal decline in the price of cryptocurrency was a trader's mistake. Yesterday, there was a sharp drop in the market, bitcoin fell in price from $ 19 thousand to $ 16.4 thousand in a few hours, altcoins showed stronger dynamics. Against this background, a user who wanted to sell a weakening BNB, most likely made a mistake with a trading pair and chose the BNB / BUSD tab instead of BNB / USDT.
The difference between these trading pairs is liquidity. The first pair contains many orders to buy and sell tokens, while the second contains almost no orders. Low liquidity makes this pair vulnerable to manipulation.
According to calculations made by the editorial staff of topplabs.org, now on the Poloniex exchange in a pair of BNB to BUSD, the total volume of orders for the sale of a coin in the price range from $ 27 to $ 900 is about $ 1000. Accordingly, if you buy a token for this amount, you can artificially raise its rate to $ 900. For $ 2,700, you can push the BNB price above $ 9,000.
A similar situation if you try to underestimate the token rate. The first order to buy the coin is located at $ 23.5. Thus, it is possible to artificially lower the price to this level by selling BNB for only $ 1. In the price range from $ 1 to $ 23.5, the total volume for the purchase of an asset is about $ 3000. By selling tokens for this amount, you can bring down the quotes to $ 1.
The order book on the Poloniex exchange in the BNB / BUSD pair (Photo: Poloniex.com)
This is exactly what happened at Poloniex yesterday. The unknown sold a large number of BNB tokens. As a result, the asset fell to $ 0.8. At this price, the trader mistakenly sold 732 coins. Another user, who had placed a buy order here in advance, instantly earned about $ 20,000 by investing just under $ 600. The profit from this transaction was over 3200%.
This is not the first time that an abnormal deviation in the BNB token rate has occurred on Poloniex. In July, the asset price fell from $ 18.2 to $ 6. It is not known how many coins were sold at the undervalued rate, but the user who took advantage of the situation earned more than 200% profit per trade.