What The Heck Happened To The Price Of Ethereum?

Ethereum, a digital currency, lost close to 100 percent of its value on Wednesday before staging a quick rebound, CNBC reported. Adam White, a vice president of the exchange, explained that a flash crash occurred at around 12:30 p.m. PT Wednesday after a multimillion dollar sell-order was filled at prices ranging from $317.81 to $224.48, GDAX explained in a blog post. But as the price of the currency continued to fall, an additional 800 stop loss orders and margin funding liquidations automatically kicked in which contributed to collapse.

No Sign Of Wrongdoing

GDAX also says it is sees "no indication of wrongdoing or account takeovers" although some users on social media question why someone would enter a multimillion order for any purpose but to manipulate the market. Unfortunately for many ethereum investors, trades won't be reversed. A user took to Reddit to say their position was sold at 10 cents which resulted din thousands of dollars of losses "in the blink of an eye." Related Links: 4 Ways To Trade Bitcoin Battle Of The Cryptos: Bitcoin Vs. Ethereum

The price of ethereum, a rival to bitcoin, was trading at around $319, but within a second, it crashed to as low as 10 cents after a large market sell order worth millions of dollars was placed on the GDAX cryptocurrency exchange.

Since the collapse occurred the price of the currency has fully recovered its losses.