BitMAX exchange revealed the reason for the collapse of its token over the weekend
Cryptocurrency exchange BitMAX has published details of the collapse of its own BTMX token at the end of last week.
According to the company, the increased volatility in the BTMX market was observed for 31 minutes on March 30 from 11:36 am to 12:07 pm Moscow time. BitMAX divides what happened in two stages.
The first phase, which she calls “volatility formation,” lasted 21 minutes. At this time, due to constant pressure from sellers, the price dropped by 19.2%; the trading volume amounted to USDT 3.72 million, of which 88.2% fell on transactions initiated by sellers. 24.8% of sales volume was associated with forced liquidations of margin positions.
The second phase or “high volatility” phase lasted 10 minutes. At this time, the price collapsed by 59.3% due to the forced liquidation of margin positions. 87.4% of the sales volume of sellers fell on such transactions.
Over the specified period, the price of BTMX fell from $ 0.175 to $ 0.05 or more than 70%.
To reduce the risks of such situations in the future, the exchange has established new restrictions that apply to the maximum available amount of borrowed funds for the user both in one currency and in all currencies for one account at once. In addition, large traders, as well as traders wishing to take advantage of the larger leverage, may be asked to provide more substantial collateral..
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