Ethereum (ETH) 50% Cryptocurrency Price Selloff Was Real, Kraken CEO Says

A plunge of more than 50% in Ether’s price on cryptocurrency exchange Kraken was probably caused by extreme selling, and not by a trading-engine malfunction, the bourse’s CEO said.

Crypto prices tumbled across the board on Monday, with many tokens falling more than 20% during the trading session. Ether, the second-biggest digital coin, sank as low as $700 from about $1,600 on Kraken, according to a report from Coindesk.

“We’re in the process of investigating,” Jesse Powell, chief executive officer of Kraken, said in an interview on Bloomberg Television. “There doesn’t seem to be any evidence of a trading-engine malfunction. It seems like trades processed accurately.”

Powell said the losses could have been exacerbated by the availability of margin trading and stop-loss orders on the exchange.

“It could be that a single whale just decided to dump his life savings.”