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I can dig through the archives this happens a bit more on Kraken for some reason Jesse also a 50% discount from the rest of the market on a major pair tells me some one of risk management over there at Kraken is sleeping.

Jesse Powell

@jespow

Feb 23, 2021

What would be the risk that is being managed? Traders on Kraken are users. We're not market making.

BTCVIX

@BTCVIX

Feb 23, 2021

I know you are smarter than this Jesse- how about a market order that wipes the books to a point of generating a liquidation cascade ? You can't with a straight face tell me what occurred today on Kraken was orderly market function, more levered up exchanges didn't move that much

Hoodie

@iwearahoodie

Feb 23, 2021

Genuine question, What are they supposed to do if a fat fingered whale hits market sell?

BTCVIX

@BTCVIX

Feb 23, 2021

OKex limits the size of market orders and forces multiple orders and/or limit orders based on the thickness of the book, some of these things have been honed and polished up for years I am more turned off by the lack of concern from Jesse, I guess to him it isn't an issue ?

Jesse Powell

@jespow

Feb 23, 2021

We do the same but if you jump through the hoops and want to dump anyway, we don't stop you. Should we?

BTCVIX

@BTCVIX

Feb 23, 2021

let me start at the root aspect with some honest questions: Do you think this event improves your image to current and prospective customers ? Do you think overall customers feel this was event is fair ? Do you even consider this an "event" worth handling ?

Jesse Powell

@jespow

Feb 23, 2021

1. No, 2. Yes (someone took the other side of every trade) but I'm sure people who sold at a price lower than the current best bid would prefer a do-over, 3. what would "handling" it be? Everything appears to have operated as expected. The event was entirely predictable.

this is at least the fifth time this type of event has happened in an isolated fashion on kraken in three years. People want parity with other exchanges in the ecosystem/index referencing, and risk bands. they don't want unique illiquid price discovery on major pairs.

yes price discovery and exchange mechanisms are working as intended, and yes people got really cheap deals on that, but that type of divergence with the overall market is just wildly drastically unpopular among the community,.

Replying to

and

Hard to know how unpopular it is. Arbitrageurs see it as a feature. Problem is you are only hearing one side of the trade right now. People who made a profit today aren't here asking for rollbacks and nanny treatment.

1:14 AM · Feb 23, 2021Twitter Web App

Replying to

(I'm just holding crypto not trading, so I don't really care about what happened yesterday, but...) If you look at all the available exchanges, and the prices on one are *wildly* out of sync with the rest, it is not confidence inspiring.

Tim Angus

@tim_angus

Feb 24, 2021

I take what you say about it performing as intended, but if events like yesterday occur, perhaps this is an indication the rules should be changed in order to bring the behaviour in line with other exchanges. (Assuming the rules are the cause, not some other external influence.)

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