Between Friday evening and Saturday morning, after US President Donald Trump announced that 100 percent customs duty would be imposed on China. cryptocurrency market crashed. Approximately 19 billion dollars of positions were liquidated in 24 hours and 1.6 million investors were deleted from the market. Immediately after the events, Crypto.com CEO Kris Marszalekcalled on regulators to examine exchanges for the fairness of practices. At the center of the controversy are allegations that some exchanges with high volatility have outages and pricing deviations that are not limited to minutes.
Marszalek’s Call to Regulators
Marszalek, X In his post on his account, he wanted the stock exchanges with the most liquidations to be put under the spotlight. He demanded public answers on topics such as the compatibility of prices with indices, transaction monitoring and AML setups, and whether in-house trading teams work with a “Chinese Wall” distinction. In his message, he also emphasized investigating the moments when users cannot place orders due to platform slowdowns that last for hours. The call follows reports over the weekend that liquidations reached record levels in the range of $19-20 billion.
Trump’s harsh action on all products imported from China was the trigger for the market collapse. customs duty announcement and the accompanying trade tension came to the fore. Experts point out that leverage concentration, automatic liquidation mechanisms and low liquidity at night deepened the decline.
Anatomy of the Crash in Cryptocurrencies
The severity of the capital outflow created aphasias in many cryptocurrencies, causing instant prices to drop to almost zero. Some altcoins experienced losses of hundreds of points within minutes. For example altcoin In ATOM, there were deep sags and then a partial recovery came. The resulting picture points to a record-scale wave of liquidations, although there are different views on the total liquidation size among data providers.
On the other hand central exchanges‘s reactions under intense pressure are on the agenda again. In the past weeks, the temporary halt of futures trading on Binance due to a malfunction in the unified collateral product has raised discussions about the fragility of order transmission in times of systemic stress. Marszalek’s questions, “were the orders priced correctly, were there any slowdowns?” focus exactly on these operational topics.
