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Coinbase Pro

Second-Largest DeFi Liquidation Day Sees $24 Million Lost

February 23, 2021 by Blockchain Consultants

Well, it eventually happened. The 22nd of February marks a crypto DeFi market crash. In fact, the crash itself has caused enough liquidations to rank it the second-highest liquidation event within the DeFi space’s history. Within just 24 hours, $24.1 million in loans were liquidated.

Compound Accounting For 60% Of Liquidations

DeBank, one of the many crypto data aggregators out there, revealed that the majority of these losses, $13.7 million, comes from Compound, constituting almost 60% of the entire market crash. The only one being close to those losses is Aave, which saw a relatively small loss of $5.4 million in liquidations.

The only other liquidation event larger than this one, and that’s by more than three times, occurred back on the 26th of November, 2020. That crash, in particular, was thanks to the DAI suddenly and spectacularly increasing in price, which caused a whopping $93 million worth of margin calls.

On Coinbase Pro alone, DAI recorded a whopping 30% increase. This, in turn, caused over $88 million in crypto loans to be liquidated within the protocol itself.

Every Factor Worsened The Event

Another important metric measured by DeBank was the total value locked (TVL) within the crypto space. According to the crypto aggregator, this saw a significant drop from $44.5 billion to $38.8 billion within just 24 hours, amounting to a decrease of 12.8%.

The only other time the DeFi markets managed to lose more in terms of percentage was back in January, when the DeFi market shed caused a decrease of 15.4% in TVL.

DeFi

Another compounding factor comes from the Ethereum mainnet itself, primarily its staggering gas fees. Merchants are now reporting a total price tag of $30 just to enact a transaction of any kind. As one would imagine, that doesn’t really encourage small-scale operations.

Couple this with crypto traders being in a constant state of bidding war just to ensure that their transactions are pulled through, alongside tumbling token prices and massive network congestion, it’s easy to see why some traders couldn’t manage to close their positions in time.

Kraken In A Bit Of A Pickle

As is always the case in these matters, the ones most affected by this spectacular DeFi crash are the margin traders and DeFi users. Kraken, in particular, is having a rough time of it, as mass liquidations shot the price down to as little as $700 while it was trading at the $1,400 range on various other exchanges. Needless to say, more than a few customers have voiced their opinions that compensation must be given.

All those major corporations that invested so heavily into Bitcoin also saw multi-million USD worth of losses as they managed to buy at the peak just to see their assets tumble down in value. The 22nd of February saw $9,000 wiped out of a single Bitcoin’s value, reminding everyone just how insane the crypto market can be once you get too comfortable with it.

Second-Largest DeFi Liquidation Day Sees $24 Million Lost

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Filed Under: blockchain, cryptocurrency Tagged With: Bitcoin, coinbase, Coinbase Pro, Compound, crypto, cryptocurrency, data, DeFi, ethereum, Exchanges, kraken, Market, Markets, opinions, other, reddit, Space, Trading, War

Coinbase launches margin trading for some users

February 12, 2020 by Blockchain Consultants

Cryptocurrency exchange Coinbase is launching margin trading today. Margin trading lets you trade on leverage. But it works both ways — margin trading lets you multiply your gains and your losses.

Margin trading is going to be available on Coinbase Pro, the company’s exchange interface for educated investors. Both retail and institutional investors will be able to submit margin trading orders with up to 3x leverage. It’ll work with any pair of assets with USD as the base currency.

For now, the feature is limited to 23 U.S. states if you’re a retail investor. Institutional investors in 45 states and nine international countries can access margin trading, though.

There are many potential use cases for margin trading. For instance, you can allocate a tiny portion of your portfolio to a margin trading order to hedge across multiple positions. Coinbase believes it has enough liquidity to help investors set up sophisticated margin trading orders.

If you’re a retail customer living in one of the 23 states where margin trading is available, you might not be able to use it. The company wants to restrict margin trading to the most advanced traders.

Coinbase is going to track your past activity on Coinbase Pro and look at trades, balances, deposits and withdrawals. If you’re an active trader, you’ll be able to access margin trading.

Here’s the list of 23 U.S. states with margin trading for retail investors: Florida, Texas, Illinois, New Jersey, Virginia, Georgia, Arkansas, Alaska, Oregon, Connecticut, New Hampshire, Massachusetts, Nebraska, North Carolina, Oklahoma, Colorado, Kansas, Maine, South Carolina, Utah, Wisconsin, Wyoming and West Virginia.

Disclosure: I own small amounts of various cryptocurrencies.

Read more: https://techcrunch.com/2020/02/12/coinbase-launches-margin-trading-for-some-users/

Filed Under: cryptocurrency Tagged With: coinbase, Coinbase Pro, margin trading

Coinbase is launching Coinbase Pro mobile app

October 10, 2019 by Blockchain Consultants

Cryptocurrency exchange company Coinbase is launching a mobile app for its advanced users today. You can now download the Coinbase Pro mobile app on iOS — the Android version is coming soon.

Coinbase Pro is the company’s exchange that lets you set up advanced order types, such as limit orders. Those are fairly standard features for a cryptocurrency exchange. But Coinbase set up a separate “pro” platform so that the main Coinbase.com exchange remains as simple and straightforward as possible.

And now, you can also use Coinbase Pro on your phone. I’ve been playing around with the app, and it features everything you’d expect. On the first tab, you can see a list of trading pairs.

Coinbase

If you tap on a pair, you can see real-time candles, the order book, your active orders as well as trade history for this specific pair. You also can set up an order to buy and sell cryptocurrencies from each trading pair page.

On the second tab, you can see your portfolio of crypto assets and its value in fiat currencies. You can deposit or withdraw cryptocurrencies from the mobile app. Unfortunately, if you want to deposit or withdraw fiat currencies (USD, EUR, GBP, etc.), the app tells you to head over to the website.

Finally, you can see your past and active orders, and check your fees and limits.

Coinbase increased some of its trading fees on Coinbase Pro for low-volume accounts just last week. It is now more expensive to trade on Coinbase Pro if you trade less than the equivalent of $50,000 over 30 days. And if you trade less than $10,000 over 30 days, it now costs 0.50% in maker and taker fees.

Kraken charges 0.26% in taker fees if you trade less $50,000 in the past 30 days. Binance charges 0.1% in trading fees. With those new trading fees, it feels like Coinbase is indeed targeting pro users with Coinbase Pro.

Disclosure: I own small amounts of various cryptocurrencies.

Read more: https://techcrunch.com/2019/10/10/coinbase-is-launching-coinbase-pro-mobile-app/

Filed Under: cryptocurrency Tagged With: coinbase, Coinbase Pro

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