It appears that someone has decided to market buy Litecoin on the Paxos (PAX) trading pair, triggering the buy orders which are placed all the way up to $100,000 per Litecoin.
A Very Expensive Mistake
The last month hasn’t seen a shortage of trading mistakes and it appears that we’ve recently witnessed yet another one, this time on the Litecoin/Paxos trading pair on Binance.
As pointed out by popular cryptocurrency commentator, as well as CEO and CIO at Three Arrows Capital, Su Zhu, someone has spent $100,000 worth of PAX per Litecoin on Binance.
Someone just paid $100k per $LTC on Binance vs PAX (USD).
Guys, chill. pic.twitter.com/3TQhnEzgGY
— Su Zhu (@zhusu) May 14, 2019
For what is worth, the trader must have had a substantial amount of money in his account and he has used the Paxos stable coin instead of Tether (USDT), which is the most popular dollar-pegged cryptocurrency. It’s probably safe to assume that the order was placed mistakenly.
Not The First Time
Trading phenomenons of the kind tend to happen every now and then. Cryptopotato recently reported that Bitcoin plummeted in its price on Kraken, diving down to $1,000 for a brief period of time.
This particular drop could have triggered a lot of stop-loss zones for traders, causing potential closures, as well as losses. However, some traders might have been luckier, if they had put lower buy orders which would have been almost instantly filled up.
On another occasion, the popular cryptocurrency WAVES also experienced a sudden flash crash earlier in April, diving its price ridiculously low. Ultimately, at one brief point, WAVS was trading at around $0.00052 or 0.0000001 BTC before climbing back up to its regular price.
As we’ve mentioned before in our Bitcoin and Altcoin trading tips, placing low orders could actually turn out to be very lucrative:
A successful strategy regarding this is placing very low buy orders. About a week ago a crazy dump occurred, selling off Augur coin down to 25% of its value! After a short while the market recovered slightly and anyone who had low buy these low orders could easily double or triple their investment. Placing buy orders requires special care, don’t wake up when you’re far away from the market to find your buy order is suddenly higher than the current market price.