Cheap Polkadot (DOT) at $0.20 Following a Flash Crash on Binance COIN Margined Futures

Polkadot’s DOT went through a major flash crash on Binance’s COIN-margined futures platform which saw its price reduced to $0.20.

• The past couple of days have been somewhat challenging in the cryptocurrency market, as the entire capitalization saw around $150 billion wiped off.
• The adverse developments followed Wall Street’s slump as legacy markets suffer throughout the entire week.
• Meanwhile, Bitcoin’s realized correlation with the S&P 500 sits at a 5-month high which, naturally, reflects on the entire market.
• One particularly peculiar thing took place on the Binance derivatives platform, Binance Futures.
• More specifically, the DOT/USD Quarterly perpetual futures contract on the COIN margined section of Binance Futures went through a massive flash crash.

DOT/USD, COIN-M Perpetual, Binance. Source: Binance

• As seen in the above chart, the price declined from a high of $33.862 to a low of $0.20 in an instant.
• This is the so-called flash crash event – an occasion where the price of an asset goes down tremendously and then recovers instantly.
• Breaking down the chart to a 1-minute candle pattern reveals that the entire thing took no more than 60 seconds.
• Nevertheless, in theory, those who had their limit orders placed lower should have benefitted from the immediate recovery of the price.
• This is not the first time something of this kind has happened.
• As CryptoPotato reported last year, Bitcoin’s price flash crashed on Bitstamp.