Poloniex Started Funding Investors Affected By Flash Crash.

Cryptoinformers || AUGUST 13, 2019
Poloniex has announced that it will start crediting trading fees to lenders who lost funds in May market crash involving the obscure cryptocurrency ClAMS.

Poloniex made the announcement
in an official blog post on Aug 12 which the firm says  Circle’s Poloniex exchange will cover lost funds by covering trading fees back through June 6. Poloniex’s Clam margin trading market experience a flash-crash on May 26. A 2014 airdropped token credited to holders of bitcoin, litecoin and dogecoin, Poloniex allowed margin trading on the coin till a flash crash wiped out 1,800 bitcoins worth $13.5 million at the time.

Poloniex socialized the lost coins to the exchanges bitcoin margin lending pool. A total of 0.4 percent of Poloniex users lost 16.2 percent of their funds held in the pool to cover the defaulted loans.

As at the time of the crash, Poloniex blamed the flash crash on the velocity of sell orders along with a general lack of liquidity within Clam margin trading. Poloniex said it was pursuing borrowers who defaulted but the conclusion of the effort has yet to be disclosed.

On June 14, Poloniex began recrediting impacted accounts with 180 bitcoins distributed across 10% of those affected. Under a new policy, lost bitcoin funds will be returned by nixing exchange fees until fully repaid.

In response to the crash, Poloniex closed margin trading on BTS, CLAM, FCT, and MAID.

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