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Ethereum crashed from $319 to 10c on GDAX after ‘multimillion dollar’ trade

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Re: Ethereum crashed from $319 to 10c on GDAX after ‘multimillion dollar’ trade

#111

Post by redm »

underyx wrote: post #95
redm wrote: post #93

"CNBC has been unable to verify the screenshot posted by DeMasie." It just shows CNBC is not ready for the crypto world. The whole point is the trade info public and distributed. There was a trade for 3809 as the screenshot shows but also other larger trades. At $.10, there was $2,592.33 in trades now worth ~$7.8M. Here are the trades in question: {"time":"2017-06-21T19:30:18.05Z","trade_id":6326580,"price":"0.100000…

The trades happen inside GDAX's own market (instead of Ethereum network transactions,) so they don't necessarily need to be public.

As posted, the trade data was available, I got it yesterday after this occurred.

Re: Ethereum crashed from $319 to 10c on GDAX after ‘multimillion dollar’ trade

#112

Post by underyx »

redm wrote: post #111
underyx wrote: post #95

Earlier quoted context omitted.

The trades happen inside GDAX's own market (instead of Ethereum network transactions,) so they don't necessarily need to be public.

As posted, the trade data was available, I got it yesterday after this occurred.

I know, but they don't necessarily need to be public.

Re: Ethereum crashed from $319 to 10c on GDAX after ‘multimillion dollar’ trade

#113

Post by thisisit »

captainmuon wrote: post #35
elnygren wrote: post #5

It takes two to tango. A lot of people lost a lof money because they got margin called at ~$2 for a commodity that is worth ~$300. https://twitter.com/elnygren/status/877660177406865408 On the other hand, a lot of people made a lot money since there are buy orders that wen through at less than 1% of the real price.

Wait, so basically I could create a buy order for $2, leave it sitting there, and wait until there is another crash [1]? If there is no crash, then nothing happens. For good measure, do it for every currency on the exchange. Is there any risk or downside to this? Seems like buying a lottery ticket for free. ---- [1] ... or someboy fat-fingers an order - although I think in that case I think still the higher bidders w…

Not really, there are risks attached to it.

One of them already been pointed out - the counter-party risk. Not only can there be situation like Mt.GOX disappearing with people's money. The exchange can refuse to honor the order specially if they are the market makers.

Some brokers put a time limit on the trades. These are called Good till Cancelled (GTC) limit orders. Like Schwab has a 60 days limit for the GTC orders. I am not sure how the crypto currency exchanges work.

Re: Ethereum crashed from $319 to 10c on GDAX after ‘multimillion dollar’ trade

#114

Post by iak8god »

strictnein wrote: post #73
iak8god wrote: post #43

Earlier quoted context omitted.

There are no ASICs for Ethereum. It's currently impossible to get latest gen GPUs from any retailer, or for anything close to retail price on eBay, because there's a mad rush to get into Ether mining.

That's not quite accurate. You can get Nvidia stuff, sometimes at MSRP, sometimes a little over. It's the AMD hardware that's impossible to find.

That's true. The hashrate/$ and hashrate/watt for the AMD cards is much more favorable for Ether mining.

Re: Ethereum crashed from $319 to 10c on GDAX after ‘multimillion dollar’ trade

#115

Post by iak8god »

Anderkent wrote: post #88
dsacco wrote: post #81

Earlier quoted context omitted.

Huh? I saw several 1080s and 1080 TIs in stock at a local Microcenter in New York just two days ago. Which GPUs are specifically used for mining?

RX 480 and 580 are really popular AFAIK. In fact they can go over MSRP on secondary market

580s (~$300 MSRP) are selling for well over $500 on eBay today.

Re: Ethereum crashed from $319 to 10c on GDAX after ‘multimillion dollar’ trade

#116

Post by lordlimecat »

unknown_apostle wrote: post #64
headcanon wrote: post #51

Earlier quoted context omitted.

The downside is that when you put in a limit buy the exchange puts your money into escrow until the order is cancelled or filled. Since a crash like that is unlikely to happen (first time on that exchange I believe) it just means you have money tied up when it could be put to better use

"unlikely" Complexity fattens the tail. Ethereum must be one of the most complex things out there. It's been live for 1 year on GDAX and then it went for a 3000x round trip. What does that tell you about odds?

It tells me that its a terrible investment decision and that I am better off at the blackjack table. At least casinos are regulated.

Re: Ethereum crashed from $319 to 10c on GDAX after ‘multimillion dollar’ trade

#117

Post by lordlimecat »

unknown_apostle wrote: post #52
captainmuon wrote: post #35

Earlier quoted context omitted.

Wait, so basically I could create a buy order for $2, leave it sitting there, and wait until there is another crash [1]? If there is no crash, then nothing happens. For good measure, do it for every currency on the exchange. Is there any risk or downside to this? Seems like buying a lottery ticket for free. ---- [1] ... or someboy fat-fingers an order - although I think in that case I think still the higher bidders w…

Yes it's sometimes called a stink bid. Lots of contexts where this kind of bidding is a good idea. E.g. after a really bad year you can expect big price swings around tax loss selling season (nov-dec), where people take out their frustration on their worst performers. Doesn't always work but if you've already identified a couple of trainwreck stocks that you think deserve a second chance, getting a stink bid filled f…

>>Timing the market

>Doesn't always work

Thats putting it lightly, you're describing some form of survivorship bias. If it were that reliable and simple the major active fund managers could score reliable index-beating returns just off of Nov-Dec.

As it turns out, rules like that don't work, which is why passive index funds inevitably win out over attempts to time the market.

Re: Ethereum crashed from $319 to 10c on GDAX after ‘multimillion dollar’ trade

#118

Post by lordlimecat »

if_by_whisky wrote: post #70
blater wrote: post #42

exactly the same thing happened to me with Litecoin on GDAX. They sold off my entire holdings for $0.01 - $0 after fees. At the time LTC was trading for something like $25/LTC. It took about 3 weeks to get anything but an automated response from their support team. This was the response: "After further review, this sell was due to a margin call of your margin position on the LTC/BTC order book. A series of large sell…

It sounds like you lost a bet.

That's OK, people investing in crypto currencies will either not see or dismiss stories like this in their pursuit of wealth.

Re: Ethereum crashed from $319 to 10c on GDAX after ‘multimillion dollar’ trade

#119

Post by lordlimecat »

iak8god wrote: post #43
MichaelGG wrote: post #41

Earlier quoted context omitted.

Which ASICs are for Ethereum? A quick search says GPUs are still popular?

There are no ASICs for Ethereum. It's currently impossible to get latest gen GPUs from any retailer, or for anything close to retail price on eBay, because there's a mad rush to get into Ether mining.

My recollection of how Bitcoin turned out indicates that most of those people will not make money. That, in fact, the simple rules of how markets work mean that most cannot make money, on several counts:

* Those with resources will have an edge, and will buy an optimal number of GPUs to get return before the price is driven down

* Anyone without resources will not be able to mine quickly enough to get a return before the price is driven down

* If the market were still lucrative, the GPU makers would not be selling all of their stock, which means it is a near certainty that either the GPU makers or someone with connections has already snapped up a healthy share

* Worse, the more lucrative it is, the more quickly ASIC makers will release ASICs which make those GPU investments all but worthless for mining.

All of this means that anyone contemplating whether they should get into mining already has their answer: "no".

Re: Ethereum crashed from $319 to 10c on GDAX after ‘multimillion dollar’ trade

#120

Post by MichaelGG »

lordlimecat wrote: post #119
iak8god wrote: post #43

Earlier quoted context omitted.

There are no ASICs for Ethereum. It's currently impossible to get latest gen GPUs from any retailer, or for anything close to retail price on eBay, because there's a mad rush to get into Ether mining.

My recollection of how Bitcoin turned out indicates that most of those people will not make money. That, in fact, the simple rules of how markets work mean that most cannot make money, on several counts: * Those with resources will have an edge, and will buy an optimal number of GPUs to get return before the price is driven down * Anyone without resources will not be able to mine quickly enough to get a return before…

I'm not sure AMD has a corporate policy that makes it easy for them to just stop sales and start mining.

Your other points are fair, but they take time to catch up. Depending on how much you're buying the GPU for and your electricity price, it may make sense still. Also, another coin may become popular.

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