Altcoin News: The Reason for the Recent Rise of the $LINK Rate at Binance 17,000 Times Could Be a Trader’s Mistake

May 11, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The Reddit user under the name Diekthxbye shared a story capable of shedding light on the recent instant rise in Chainlink prices (LINK) on the Binance exchange.

According to the user, his friend — “over 50 years old, the owner of a successful business” — has been accumulating cryptocurrency in small amounts over the past months. On May 6, he transferred $500,000 in Stablecoin Paxos to Binance.

“Without deep knowledge of trading, he entered the Paxos/Chainlink order book, the daily trading volume in which usually does not exceed $10,000, with all his Paxos and clicked — Market Buy”, writes Diekthxbye.

Image credit: Reddit

In the past, he made small transactions for a few thousand dollars and perhaps did not understand how the crypto exchange works. Needless to say, this was an unfortunate decision, since he cleared the entire glass and shoved the price of Chainlink, which then cost about $0.58 to $9,999.

Image credit: Binance

Thus, the growth rate within one candlestick was more than 17,000x. Under normal conditions, the cost of 40 LINK that day would have to be about $23.

The user claims to have sent a call to the Binance support service, but he never received a response.

The second participant in the transaction, who managed to hit the jackpot, having placed an order with an unreasonably high execution price, did not appear.

The truthfulness of this story and the possible measures for the protection of users by the exchange have caused heated debate among the community members. Binance, in this case, acts as an intermediary between traders and is not responsible for the executed orders. One of the alternative explanations for the incident is the money laundering attempt.

Binance itself does not comment on the situation. Earlier on the same exchange, under unexplained circumstances, an instantaneous collapse of the Waves rate occurred.

Author: Marko Vidrih