Rediculous trade orders with dust

[jackg]

On exchanges like coinbase pro it seems interesting to look at some trades that are listed as being extremely high but then realise that the amount the would be traded is tiny. I.e. There was a 28btc sell order for litecoin (I think we can agree that even though litecoin is 'great' it isn't going to do that well).

Are these trades ones that are put here by people with dust on an exchange they didn't withdraw and then decided they may as well list a trade there to see what happens and maybe they can withdraw those coins at some point if it ever triggered.

P.s. I wasn't sure where to put this but speculation seemed alright. Although it's more speculating about the traders than the price which is what you want to do anyway to be able speculate on the price.

[1713522845]

1713522845

[YuginKadoya]

Because of the sudden increase in the value, I really think some are seeing a light that bitcoin will continue to ride on the waves of recovering that is why we are seeing just like you have said LTC trade to BTC was their primary objective or other coins to be traded to bitcoin, I really think it is OK to put these on Speculation because We can not read what minds of people buying bitcoin or changing other coins for bitcoin, And I think moreover a lot is surely trusting bitcoin more than other coins like LTC and ETH that would make a great impact in the future.

[pooya87]

from what i have seen "dust orders" happen in the following scenarios:
1. when you place a bigger order but only part of it is filled so you don't cancel the rest and the "dust" remains there
2. shitty bots + newbies using them. this happens quite often too. people don't know what they are doing, they just click on a setting and change some numbers and click the magic start button and think they are trading. the result is a lot of different but weird orders in the orderbook!
3. as for the high prices, people are setting them intentionally as a gamble on whether a bug is going to occur. it has happened before for sure which makes them do it more. IIRC it was 2 years ago where bitcoin price fell down to 1 cent or something like that on Coinbase because of a bug that cleared the whole orderbook.

[jackg]

Lol the third one is funny.. I remember having an order to sell something and buy back in the same day and due to a technical failure, both triggered at the same time..

Number 2 is probably true in a lot of cases also.

[buwaytress]

That's a surprise... I thought Coinbase would have banned that type of trade by now. Even Poloniex since early last year (or was it even in 2017 I can't recall now) made changes to their system so that those types of trades can't happen. If I recall, you couldn't put any orders more than 5% variance above/under the current market price. You also couldn't do dust trades. In fact, I remember most of my asks were cancelled (I don't see what's wrong with setting a buy order seriously below current ask in case a flash crash happens).

[dothebeats]

That's a surprise... I thought Coinbase would have banned that type of trade by now. Even Poloniex since early last year (or was it even in 2017 I can't recall now) made changes to their system so that those types of trades can't happen. If I recall, you couldn't put any orders more than 5% variance above/under the current market price. You also couldn't do dust trades. In fact, I remember most of my asks were cancelled (I don't see what's wrong with setting a buy order seriously below current ask in case a flash crash happens).

This was in 2017 where dust trades were effectively removed from the platform. Well from the platform's point of view, any bugs may happen at any given time. The one I recall was the same as pooya87 stated on his post. If there was a huge number of dust trades waiting to be fulfilled, and at the same time the platform decides to go crazy and list items at a laughably ridiculous price, then poof goes the profits and the money of the users and the exchange. But yeah, flash crashes do occur, and they should have made some minor changes on the way they handle trades below and above the current market price so that traders will have the time to react and position themselves better on the market.

[cellard]

from what i have seen "dust orders" happen in the following scenarios:
1. when you place a bigger order but only part of it is filled so you don't cancel the rest and the "dust" remains there
2. shitty bots + newbies using them. this happens quite often too. people don't know what they are doing, they just click on a setting and change some numbers and click the magic start button and think they are trading. the result is a lot of different but weird orders in the orderbook!
3. as for the high prices, people are setting them intentionally as a gamble on whether a bug is going to occur. it has happened before for sure which makes them do it more. IIRC it was 2 years ago where bitcoin price fell down to 1 cent or something like that on Coinbase because of a bug that cleared the whole orderbook.

I don't reckon the BTC price going to 1 cent, I think that was Ethereum. In fact I just found this nice gif right there:



So this is why most likely all those troll orders exist. They are counting on either an exchange bug or someone fat-fingering and dumping the price somehow.

It's just like a fisherman waiting patiently for something ridiculous to bite the bait even if most likely it's a waste of time since these things are extremely rare.

[Upgrade00]

Just finding out about dust trades and started looking it up. One would not expect this with bigger exchanges, but there is a slim possibility of a glitch occuring and the order would be put up. The chance of the transaction completing is very minimal.

While looking it up, I also came upon cryptocurrency dust, which is where one makes a transaction of a lesser amount than the transaction cost.

[mrdeposit]

The volume for this minute is around 261k LTC (roughly 3200 BTC) and is not very small. Perhaps the calculation is different, calculated from the beginning of the day from zero. Indeed, it is hard to believe that there is little trade, 24 hour volume according to coinmarketcap is $1.332.417.049.

[futile-resistance]

Most traders are not hodlers, they trade based on how they see the market per time in order to make profit, so if you see a trader dumping bitcoin for litecoin, it is because he has watch the market and have seen that there might be a growth in litecoin so he make purchase in order to make profit. I believe that's what trading is for anyways.

[davis196]

On exchanges like coinbase pro it seems interesting to look at some trades that are listed as being extremely high but then realise that the amount the would be traded is tiny. I.e. There was a 28btc sell order for litecoin (I think we can agree that even though litecoin is 'great' it isn't going to do that well).

Are these trades ones that are put here by people with dust on an exchange they didn't withdraw and then decided they may as well list a trade there to see what happens and maybe they can withdraw those coins at some point if it ever triggered.

P.s. I wasn't sure where to put this but speculation seemed alright. Although it's more speculating about the traders than the price which is what you want to do anyway to be able speculate on the price.

Some trader has 28btc worth of litecoins at Coinbase?I wouldn't take the risk of having that amount of coins into one crypto exchange,even if it's the all mighty Coinbase.They could easily block that account for any reason ans this trader could say goodbye to all his coins.
I don't know about those sell orders,perhaps they are panic selling altcoins in order to buy more btc fast.

[buwaytress]

That's a surprise... I thought Coinbase would have banned that type of trade by now. Even Poloniex since early last year (or was it even in 2017 I can't recall now) made changes to their system so that those types of trades can't happen. If I recall, you couldn't put any orders more than 5% variance above/under the current market price. You also couldn't do dust trades. In fact, I remember most of my asks were cancelled (I don't see what's wrong with setting a buy order seriously below current ask in case a flash crash happens).

This was in 2017 where dust trades were effectively removed from the platform. Well from the platform's point of view, any bugs may happen at any given time. The one I recall was the same as pooya87 stated on his post. If there was a huge number of dust trades waiting to be fulfilled, and at the same time the platform decides to go crazy and list items at a laughably ridiculous price, then poof goes the profits and the money of the users and the exchange. But yeah, flash crashes do occur, and they should have made some minor changes on the way they handle trades below and above the current market price so that traders will have the time to react and position themselves better on the market.

Ah so it was even earlier than I remember. I don't have the right chronology in my memory right now, but I think those flash crashes on Eth (against BTC pair I think) on a certain South Korean exchange was what really pushed exchanges to do this (remove dust trades). There's a lawsuit in Singapore, involving the plaintiff asking the exchange to honour the price they somehow managed to get during a flash crash. I'm expecting common sense to prevail and the judge to rule in the exchange's favour. All about the little man but these extreme offers are unfair, to say the least.

[BrewMaster]

That's a surprise... I thought Coinbase would have banned that type of trade by now. Even Poloniex since early last year (or was it even in 2017 I can't recall now) made changes to their system so that those types of trades can't happen. If I recall, you couldn't put any orders more than 5% variance above/under the current market price. You also couldn't do dust trades. In fact, I remember most of my asks were cancelled (I don't see what's wrong with setting a buy order seriously below current ask in case a flash crash happens).

the only reason for limiting "dust traders" as in opening orders with a very small volume size is to limit the pressure on their databse so that they can't get DDoSed like this (maybe even unintentionally) but limiting people from placing orders at higher/lower prices (specially if the limit is 5%) is just ridiculous.

[solarion]

Most traders are not hodlers, they trade based on how they see the market per time in order to make profit, so if you see a trader dumping bitcoin for litecoin, it is because he has watch the market and have seen that there might be a growth in litecoin so he make purchase in order to make profit. I believe that's what trading is for anyways.

They will not sell bitcoin for buying litecoin and then that is not actually good idea as in the investors point of view. If you wish to invest for trading purposes please look into the best coin for that day and invest towards it.

Be cautious and pick the coins which is bumping and dumping as the price movement goes up and down.

[pooya87]

~
I don't reckon the BTC price going to 1 cent, I think that was Ethereum. In fact I just found this nice gif right there:

i do remember the ETH price  "flash crash" which was pretty funny. but for some reason i remember this bitcoin flash crash as a distinct case, maybe i am confusing different things and maybe it was on another smaller exchange. i can't find anything about it online though!
ps. it seems like someone has even entered the ETH thing on wikipedia https://en.wikipedia.org/wiki/Flash_crash#2017_Ethereum_Flash_Crash

[buwaytress]

That's a surprise... I thought Coinbase would have banned that type of trade by now. Even Poloniex since early last year (or was it even in 2017 I can't recall now) made changes to their system so that those types of trades can't happen. If I recall, you couldn't put any orders more than 5% variance above/under the current market price. You also couldn't do dust trades. In fact, I remember most of my asks were cancelled (I don't see what's wrong with setting a buy order seriously below current ask in case a flash crash happens).

the only reason for limiting "dust traders" as in opening orders with a very small volume size is to limit the pressure on their databse so that they can't get DDoSed like this (maybe even unintentionally) but limiting people from placing orders at higher/lower prices (specially if the limit is 5%) is just ridiculous.

I agree we should all get the freedom to put orders at any size, any price you want, but you're right: the justification given by Poloniex at least, was to reduce the stress on their database. Though they probably would kill to have even a third of the load they used to have in 2017 today! Problem is, I still think this was a de-risking move.

Plenty of lawsuits going on, on one side the traders who got lucky and got ridiculously priced orders filled, the other those who made careless mistakes of taking those orders. Too much risk for litigation.

[jvdp]

Most traders are not hodlers, they trade based on how they see the market per time in order to make profit, so if you see a trader dumping bitcoin for litecoin, it is because he has watch the market and have seen that there might be a growth in litecoin so he make purchase in order to make profit. I believe that's what trading is for anyways.

Your thought is right, Most traders are not a holders then why they are concentrate in Bitcoin and litecoin because few amount of pump only occur in this platform so these two are not a perfect gem in continuous trading. Bitcoin is a purely long term investment so most traders are know this fact, I would suggest to invest on Binance token because it will going to moon day by day.

[deisik]

Are these trades ones that are put here by people with dust on an exchange they didn't withdraw and then decided they may as well list a trade there to see what happens and maybe they can withdraw those coins at some point if it ever triggered

That's not necessarily so

Sometimes, there is not enough liquidity in the orderbook and you can see very long candles in either direction (aka flash crashes or surges), which move well beyond the average prices across the market. It does happen now and then, especially at smaller exchanges, so placing such orders makes sense, and still more so if they are not big. In other words, it is not necessarily dust as someone can just add a small order and hope it gets triggered eventually. I use such orders myself, though in a shorter range, of course

So this is why most likely all those troll orders exist. They are counting on either an exchange bug or someone fat-fingering and dumping the price somehow

Nice gif. Can be an exchange itself trying to pull off their little shenanigans, though

[el kaka22]

I think they are trying to make money from the bots. It is not quite common and it rarely happens but I know two cases where bots made huge mistakes and the market was cleaned off by the auto traders and many people made a ton of money. One was for ethereum that I remember where people were capable of selling fractions of eth for tens of bitcoin because the bot didn't know when to stop or how to stop and then destroyed the owners wallet by buying the whole market.

I don't remember the other coin but I know it happened at least one more time and I saw it but forgot which coin it was. So, these people put that type of weird orders out there so they could get the money from the bot in case something like that ever happens, and it will eventually happen, it is not a common thing but its not one time deal neither, it happens rarely but it still happens so they will make money from that.