Users lost 1800 BTC due to a sharp drop of the CLAM

by in Cryptocurrency News

Users lost 1800 BTC due to a sharp drop of the CLAM

The American crypto exchange Poloniex reported that users, financing margin trading lost 1800 BTC (about 14 million at the current exchange rate) due to a sharp drop of the CLAM rate and extremely low liquidity of this coin.

Related: Poloniex returns unlimited trading for unverified accounts

According to the representatives of the exchange, on May 26, the so-called Flash crash of the CLAM asset occurred (228th place in terms of market capitalization), as a result of which the coin's cost fell by 77% in less than an hour.

The collapse of the course caused a wave of liquidations designed to reduce losses and repay loans to lenders. Poloniex claims that 0.4% of the total number of users of the exchange "suffered", and the volume of the marginal lending pool decreased by 16.202%.

Also, the company said that as long as borrowers do not repay the specified cost, their accounts will be frozen. The very same stock exchange promised creditors to return their money as soon as it manages to pay "damages".

To avoid such losses in the future, the exchange will remove the assets of BTS, CLAM, FCT, and MAID from the marginal section. Moreover, additional measures will be introduced to monitor risks when trading with borrowed funds, as well as measures to prevent strong price slippage and excessive concentration of marginal positions.

Earlier, Poloniex announced the introduction of special monitoring tools to track insider trading and Pump Dump schemes.