Poloniex suffers a loss of 1,800 bitcoins
Crypto

Poloniex suffers a loss of 1,800 bitcoins

By Alfredo de Candia - 7 Jun 2019

Chevron down

Poloniex has suffered a loss of 1,800 bitcoins. It all started on May 26th when the price of the CLAM token plummeted from over 18 dollars to 5 dollars. This collapse caused the Poloniex platform, which allowed margin lending operations through BTC, to lose 1800 BTC in a short time.

As explained in Poloniex’s full report, the loss was caused by several factors. First of all, the speed of the crash and the lack of liquidity of the CLAM market; moreover, a significant amount of the loans was collateralised in CLAM, thus leading to a decrease in value.

The Poloniex team explained that they will return the funds to all users who have been affected by this situation, i.e. 0.4% of users. In addition, to prevent this problem from recurring, the platform has made the following changes:

  • Four assets will be removed from the margin trading, BTS, CLAM, FCT and MAID, and the relevant market will be checked for sufficient liquidity to withstand all transactions;
  • Additional levels of risk monitoring will be implemented and if any anomalies or problems are noted, direct action will be taken to disable the asset in question;
  • Additional market protection will be put in place to prevent price slippage and highly concentrated positions, also thanks to the market surveillance tool, NICE Actimize.
Alfredo de Candia
Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

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