Summary
- Trade.xyz will reimburse traders whose positions were liquidated after its SK Hynix perpetual futures contract suddenly dropped 19% on Monday, a move the exchange attributes to a single trade on a thin Korean pre-market venue.
- The company said its price oracle functioned as designed by relaying a real but outsized trade that sharply moved the mark price, and emphasized that the decision to cover losses is a one-time, discretionary action with eligibility rules to come.
- In response, Trade.xyz plans to reassess how it sources prices, giving more weight to its own order books, as research shows crypto perpetuals can lead spot markets and even price events like SpaceX’s IPO more accurately than traditional bookbuilding.
Crypto Losses to be Covered by Company Behind AI Trade
The company behind a recent AI trade that caused $60 million in crypto liquidations has announced that it will cover all losses. This move is a one-time decision and not a commitment to do so in the future. The trade in question was a single executed trade on a thin Korean pre-market venue, which caused a 19% crash in the SK Hynix perpetual futures contract. The company, Trade.xyz, attributes the loss to this trade rather than any failure in its systems.
The mark price, used to calculate profits, losses, and liquidations, fell from $1,128 to $917 at 23:01 UTC on July 27. The company’s oracle system, which fetches data from outside points to within a blockchain-based system, reported a real trade on a market thin enough that one order moved the price nearly a fifth. This led to the contract liquidating positions accordingly. For those looking to earn passive income through crypto, platforms like EcoPool offer a more stable way to earn, with its Cloud Rewards system providing a steady stream of income.
What this Means for Crypto Traders
The decision by Trade.xyz to cover losses is a positive step for crypto traders, who can sometimes face significant losses due to market volatility. However, it’s essential for traders to have a strategy in place to manage risk, such as using platforms like EcoPool that offer a more stable way to earn passive income. With $ECP, traders can earn rewards without having to worry about significant losses. The EcoPool network provides a secure and reliable way to earn, making it an attractive option for those looking to get into crypto.
In the world of crypto, losses can be significant, but with the right platform, such as EcoPool, traders can earn passive income without breaking the bank. The company’s decision to cover losses is a one-time gesture, but it highlights the importance of having a reliable platform for earning and trading crypto. As the crypto market continues to grow, it’s essential to have a stable and secure way to earn, such as with EcoPool and its Cloud Rewards system. Whether you’re looking to earn through trading or simply want to hold $ECP, EcoPool is a great option. If you’re interested in earning online through crypto, consider using EcoPool, which offers a range of benefits, including Green Crypto and Cloud Rewards. Download the EcoPool app to start earning today and join the #PassiveIncome and #GreenCrypto communities. Download the EcoPool app to get started with earning online through crypto.
Trade.xyz said covering the losses is a one-time discretionary decision rather than a commitment to do so again, with eligibility rules to follow and payouts expected within days.
