Bitfinex DDOS December 13th and $NEO $OMG $ETP flash crashes on November 29th
At the same time, the incoming flow of new users to all exchanges is extremely high due to mainstream media coverage of cryptocurrencies. Coinbase app hit #1 on Apple store this week and we can only imagine the amount of traffic to other exchanges. Bitfinex, being the #1 cryptocurrency exchange by volume, could be just suffering downtime from heavy user load and calling it a DDOS.
It’s hard to say what exactly happened because the transparency of Bitfinex is so low. See Tether controversy posts (1, 2, 3), Tether hack, Bitfinex hack, – considering all that the public is extremely skeptical to everything that comes from Bitfinex.
But this time people are losing a lot of money due to Bitfinex’ downtime. Not only the December 13th DDOS/Downtime during the Litecoin rise, but also as the exchange glitched on November 29th when several altcoins ($NEO $OMG $ETP) flash-crashed and the platform was rendered unresponsive. Here’s a collection of seriously disturbing customer complaints:
We are currently under heavy DDOS. API is also down. We are working on further mitigation.
— Bitfinex (@bitfinex) December 12, 2017
great question….i have a feeling this is what happened on Nov 29 when the $NEO flash crash happened…NEO kept trading, but I was unable to enter NEO sells for my margin position…end result about a 120k USD Loss….AND still no response on it from @bitfinex
— Rob G. (@SuperRG1) December 12, 2017
@nathanielpopper Hi Nathaniel, you already probably know but there was a big flash crash for 3 cryptocurrencies in @Bitfinex, on Nov 29. $NEO dropped a 95% , $ETP even more, $OMG also. I'd give you some details if you're interested https://t.co/i3WMszk1zA
— BitNoob (@NoobBit) December 4, 2017
Sam Aiken has put together a post on the $NEO flash crash end November: https://medium.com/crypto-punks/how-we-lost-90-of-crypto-investments-in-a-few-hours-64fdf1fd5ea1
My stop loss was set at $3 …. and my listed liquidation price was $2.54 …. so yea anyone else can rationalize out $1.01 liquidation as user error? Monday quarterbacks everywhere on twitter – waste of time.
— Brian (@biop3rl) November 29, 2017
there are a lot of us… about 4k before. -1.5k after… pic.twitter.com/sWfmjnrOLX
— Maksim (@Maksim61095204) November 29, 2017
The price of ETP suddenly fell down for just 1 minute from $3.5 to $0.05 triggering all kind of stop-losses and liquidations to be executed way below the price that they were set at. A bit later ETP will fall down again from $2.7 to $1.00 and jump right back. So my position was auto-liquidated at an enormously low price and my overall balance became much smaller. And as I understand from other examples, my balance became smaller by moreamount of USD than I’ve actually backed up with collateral to buy ETP, which will later trigger a liquidation chain-reaction. Source
Can someone INDULGE ME? How does ETP + NEO "flash crash" with that little 24 hour volume down to $0.05 and $4.00 respectively? How is that seriously possible??? The order book yesterday showed MUCH MORE orders than that. I check order book walls EVERY DAY.
— Philakone (@PhilakoneCrypto) November 29, 2017
DDOS plus whales putting up huge sells. It was a planned, liquidation attack. This wasn’t a random error or server issues.
— Zachary Kaufman (@ZacharyKaufma11) November 29, 2017
Found something funny. In https://t.co/RK9P7ALhdX , if you get the Bitfinex NEO graph you can't see the candles between 20:36 and 21:51 GMT+1.
So all was working great when the flash crash occurred.
— BitNoob (@NoobBit) November 30, 2017
So once again, to recap – this is what happened. Several cryptocurrencies ($NEO, $ETP) traded on Bitfinex went significantly down for just one minute. According to third-party tools (tradingview) nothing like that ever happened. At the same time, within the Bitfinex platform, stop-loss orders were fired at prices A LOT lower they were set to. People lost tons of money.
Here’s a bunch of safety tips you could take out of it:
- Do not trade altcoins with low liquidity.
- Store your coins in wallets you own and not on exchanges.
- Do not trade on margin on crypto exchanges
- Remember your stop loss orders do not mean anything and everything can be called a “hack” or a “ddos” post-factum.