Though the trade most likely did not go through, a drastic candle on Coinbase Pro saw 42,000 bitcoins sold at $0.18.
Traders noticed a strange candle on the BTC/USD trading pair on Coinbase Pro. Some 42,000 bitcoins were sold at $0.18, but it was likely just a UI error.
Editor’s Note: Coinbase has responded by stating that the exchange is aware of the UI issue reported on in this article and that it briefly displayed an incorrect price for the BTC/USD trading pair’s order book. However, no trades were executed at that price and the error has been fixed.
Problems at Coinbase
The long candle on the BTC/USD pair on Coinbase Pro today has to be seen to be believed. According to the order book, over 42,000 BTC was sold at $0.18. However, it was likely a UI error and that the trade didn’t go through — as some users commented on social media.
A screenshot of the remarkable candle was posted by @CaptainScio on Twitter. As you can see, the order book shows the sale at $0.18.
— CaptainScio 8 mo's 29 days til Full Time Trading (@CaptainScio) April 6, 2020
Perhaps a fake trade, the candle can be explained as an error on Coinbase or a possible ‘system overload.’ The exchange has not issued a statement on the strange occurrence, and it is most probable that the trade never processed — it was merely a UI bug.
Although we don’t know whether or not any BTC was sold at abysmally low prices, the occurrence is not all that uncommon in the cryptocurrency space. Ripple’s XRP crashed to $0.15 on BitMEX in February when the exchange suffered a day of extreme volatility. The exchange’s negligence angered many traders then.
Flash crashes usually happen on days when the market experiences a drastic drop and prices cannot readjust in time. On the bloody day of March 12 — which saw the cryptocurrency market drop some 50 percent — LINK briefly traded for close to $0 on Binance.
Sometimes, however, flash crashes can also occur due to poor liquidity. In September 2019, BeInCrypto reported that someone was able to snag some BTC at $1,800 on the illiquid BUSD/BTC trading pair on Binance.
As of now, we really don’t know what went wrong on Coinbase Pro, but we can likely assume it was merely a UI bug. Otherwise, there would be people sharpening their pitchforks on Crypto Twitter and beyond, but the reaction has been largely quiet. Coinbase might want to take more precautions to ensure their UI is optimized and correct because such mishaps can scare traders away.