Kraken users are claiming compensation after severe stock market turmoil, which led to the settlement of deals delivered amid sharp withdrawals recorded in the cryptocurrency markets on February 22nd.
On February 22nd, the largest daylight in Bitcoin (BTC) and Ether (ETH) history was linear value, with BTC down nearly $ 9,500 from $ 57,500 and ETH dropping $ 400 from $ 1,940 in 24 hours. Queen Piece.
However, the combination of weak buy support and streak settlement appears to have resulted in particularly large losses for Kraken – BTC fell 22% to below $ 45,000, while ETH fell 64% and found support at only $ 700.
The public reaction to the subreddit r / Krakens support led to many traders expressing their disappointment. Some traders are even threatening to file lawsuits against the stock market, and Reddit user u / dtk6802 claims to have lost most of his savings in the midst of the crash:
“I lost most of my savings and have not received a response from this person. I think they will get their money back, otherwise they will lose all of their customers. I feel sick, but I will join the lawsuit with a lot of evidence (screenshots) if I don’t get my money back.”
However, for some, the fallout appears to outweigh losses and debt: Reddit user u / GoEers304 claims the balance indicates that they now owe Kraken’s money as a result of a sudden failure.
“Somehow I owe them now $ 120. How does it get negative? I had a lot of margin to cover all the other platform drops, but who could cover the wrong 90 percent drop?” – so they are.
Despite claims for flash failures from Kraken users, comments on social media indicate that the exchange will not compensate traders for losses.
To protect against bulk liquidations in the event of a sudden and local failure, many cryptocurrency derivatives have long used index rates to set margin requirements.
While other platforms have also suffered serious crashes, notably Nexo, the Twitter trading platform indicated that it will compensate users for the losses incurred during the downturn:
Liquidations were not uncommon amid recent fluctuations in cryptocurrency prices. February 15 caused a $ 11.8 billion drop in ether prices in the broader crypto market by $ 1.89 billion. Most of the settlements took place on Binance, with $ 336 million Ether and 55 million Bitcoin removed from user balances.