An unusual situation occurred on the Bitrue exchange, where on the night of April 25-26, the value of XRP fell to $0.0001. This resulted in the liquidation of all long positions on the token. The reason for this is an alleged glitch.
XRP with a massive drop
XRP experienced a sharp decline on the Singapore-based Bitrue exchange. The value of the cryptocurrency on the futures market temporarily settled at $0.0001. Unfortunately, long positions held by users on this exchange were effectively liquidated.
According to Bill Morgan, a well-known Australian cryptocurrency lawyer, a technical problem is behind the drop. The news of the error came to light when a number of Bitrue customers complained on Twitter that they were unable to execute their buy orders at the $0.0001 level.
Morgan stated in his tweet that XRP had dropped to the $0.001 level, but in fact, based on user screenshots, we know that the price reached as low as $0.0001 and then quickly climbed back up.
Did the Bitrue exchange act premeditatedly?
Some investors believe that the whole incident was deliberate and that the exchange wanted to profit from such a move. Although Bitrue has not yet issued an official statement on the subject, many believe that the response was sent individually through emails to the affected customers.
On the one hand, Bitrue is known for its friendly relationship with the XRPL and Ripple ecosystem, making it a popular choice for investors to trade XRP. On the other hand, questions are beginning to arise about the exchange’s credibility in light of current events.
However, it is worth noting that Bitrue has consistently positioned XRP as its central trading asset since 2020, and has exchanged most mainstream tokens for XRP Ledger. Therefore, despite the perturbations, investors continue to show interest in the token.
Bitrue in a difficult situation
The above-described malfunction comes just weeks after the hack, which saw assets worth a total of $22 million stolen from the Bitrue platform. They include Ether, Shiba Inu and Polygon, among others. While the exchange has assured its customers of full compensation following these events, it is unclear whether users who were affected by the XRP-related glitch will receive any form of compensation. What is certain, however, is that Bitrue, which is one of the largest exchanges for XRP investors, will have to take steps to rebuild trust among its customers.
