Elsewhere, the price of LINK tumbled to an average of around US$1.80 [AU$2.91], a loss of more than 47 percent in less than 24 hours. According to CoinCodex, LINK is currently in the #12 spot in terms of largest 7-day losses.
As of this writing, LINK is valued at $2.44, with $856 million in market cap – a loss of more than 43% over the week. This is a far cry from last week’s all-time high of near $5.00, which, at the time, moved the cryptocurrency into the #11 spot by market cap.
After the crash, panic market selling ensued. And while LINK was able to quickly pick itself up from the crash, it now records 20-30% daily losses.
As far as whether or not LINK can still be considered a safe-haven asset, the crypto community remains divided. Many believe that if not for the market-wide drop in the value of cryptocurrencies, LINK’s price would have remained stable. Others say that the weekly losses witnessed from LINK are why it cannot be considered a safe-haven.
One person made out like a bandit from LINK’s flash crash. Over a year ago, an unknown crypto trader placed a “stink bid” – a ludicrously low bid – the day after Binance added the LINK/USDT pair. As no price band restrictions were in place at the time, the order was allowed to stand.
Although the order was only partially filled, the trader was able to buy 900,000 LINK tokens for just $0.0001 apiece, or $90 for the whole lot. Even if he were to sell them at the current market value, the trader would realize a profit of more than $2.1 million.
Theories abound about why LINK’s value plummeted so quickly. Some say that it could be pointing to a liquidity issue for LINK — the condition that made price slippage a risk. Others say that the crash might have only been because of shorting.
What do you think caused the LINK flash crash? Let us know on Twitter!
Featured image courtesy of Pixabay
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