Topic: [2017-06-25] GDAX to Reimburse Traders for Losses During Flash Crash (Read 3119 times)
It shows how centralized the markets are. I remember back in 2015 someone accidentally bought the price up from just over $300, all the way to the $2200 level on Gemini. Later Gemini reversed the trades despite the fact that it was a legitimate trade, while in reality it shouldn't be reversed at all. Let people burn through their money if they so wish, as long as nothing fraudulent is happening, trades should never ever be reversed, and even then it's still debatable....
June 27, 2017, 10:47:02 AM
This is a mistake.
GDAX will learn this lesson later.
They think they're doing the "right thing" by compensating people who were trading on margin and had stops that were legitimately triggered. They aren't.
The sell order was legitimate.
The fills were legitimate.
This is similar to the slippery slope that ETH slid down, when crowd "FEELZ" decided that emotion was more important than ethics. GDAX has now made the same mistake, and now when a similar incident occurs and they don't have the capital to magically make everyone "whole" again - the mob of newbie traders will turn against them.
GDAX will learn this lesson later.
They think they're doing the "right thing" by compensating people who were trading on margin and had stops that were legitimately triggered. They aren't.
The sell order was legitimate.
The fills were legitimate.
This is similar to the slippery slope that ETH slid down, when crowd "FEELZ" decided that emotion was more important than ethics. GDAX has now made the same mistake, and now when a similar incident occurs and they don't have the capital to magically make everyone "whole" again - the mob of newbie traders will turn against them.
June 27, 2017, 10:10:56 AM
I am sure that many traders who lost money on that flash crash would be so happy with this development. I am not so familiar with this story but I can sense that GDAX felt being generous this time and it wants to regain the trust of its trading clients in a big way. I am hoping that the promised reimbursement would proceed smoothly as it should be.
Do you think this can become a precedent for other exchange to follow in a similar story in the future? Well, that remains to be seen for now I would not say no if I am one of those affected.
Do you think this can become a precedent for other exchange to follow in a similar story in the future? Well, that remains to be seen for now I would not say no if I am one of those affected.
June 27, 2017, 09:43:36 AM
GDAX to Reimburse Traders for Losses During Flash Crash
https://dcebrief.com/gdax-to-reimburse-traders-for-losses-during-flash-crash/
This is what we don't need - Exchanges trying to 'protect' traders who got hurt. The loss would have taught traders to be more careful while putting their sell orders.
June 27, 2017, 08:24:11 AM
GDAX to Reimburse Traders for Losses During Flash Crash
https://dcebrief.com/gdax-to-reimburse-traders-for-losses-during-flash-crash/
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