Bitcoin sold for $ 6,000 a coin, this is the bargain some customers of the Philippine exchange PDAX have been entitled to last week. What certainly should have looked like a promotion for the lucky ones turned out to be a technical error on the platform. If the leaders of the exchange quickly caught up with their blow, a mini tussle seems to be emerging between the box and the users who have benefited from the failure of the system.
Sales 88% below their actual values
Victim of its own success, the Philippine exchange explained that its trading volume had increased 70-fold in recent months. This strong activity ended up getting the better of its technical system which found itself overloaded. with the consequence of splitting its negotiation engine. During this period, some users took the opportunity to buy Bitcoin (BTC) at PHP 300,000 or $ 6,000 or 88% below its value. However, Nichel Gaba -CEO of the stock exchange- told a press conference about the incident that very few of these orders were valid.
“You see, the PDAX, like most exchanges, bases its order book on a centralized database, not on a chain logbook. Therefore, although these transactions appeared to be valid, they were not. It is understandable that many users feel they are entitled to these assets. However, based on our investigation of the incident, we have concluded that a sale did not take place. So nothing was really bought or sold, unfortunately »He declared. Subscribe for freeJoin our community of Bitcoin and crypto-currency enthusiastsemail * Validate
Accounts blocked pending return of assets
Despite the speech to the press, it looks like the exchange takes a whole different method behind the scenes as several users have reported. “After almost 24 hours, they sent me a letter of formal notice and an SMS, asking me to re-transfer the Bitcoin, or they might be forced to take legal action against me », Declared one of them.
The exchange has also started to lock the accounts of affected users while waiting to find a solution that will allow it to regain possession of its assets. For his part, Mr. Gaba called for voluntary restitution, arguing that it was the right thing to do. ” The correct thing to do is send it back, the same as if someone gives you excess change or the ATM gives you too much cash. He asserted.
With an 88% shortfall for every valid trade, it is highly unlikely that the exchange will drop these Bitcoins. It should perhaps agree to release a small bonus to those concerned so as not to let this situation further weaken its position on the market.
Behind the generic signature “TCT editorial staff” are young journalists and authors with specific profiles who wish to remain anonymous because they are involved in the ecosystem with certain obligations.
The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.