The CEO of the leading cryptocurrency exchange, Kraken, has added that the earlier sudden 50% drop within the price of Ethereum [ETH] on the exchange Monday was caused by an extreme sell-off and not any system technical glitch.
“There doesn’t seem to be any evidence of a trading-engine malfunction,” Jesse Powell, told within an official interview with Bloomberg, today on Tuesday. “It looks like trades processed accurately.”
Powell added that the crash might be caused by one big investor who “decided to dump his life savings.”
Ethereum [ETH, -10.54%] crashed to $700 USD at 14:20 UTC [9:20 a.m. ET] earlier on Monday, having been north of $1,600 USD solely a few minutes earlier.
The drop occurred amid a broader sell-off of cryptocurrency assets that saw ether drop as low as $1,546 USD, consistent with the data provided by CoinMarketCap, but nothing as dramatic as was witnessed on Kraken’s platform.
Kraken is unlikely to roll back trades, Powell advised Tuesday but hinted at offering some over compensation for clients affected.