CZ Clarifies: The BTC/USD1 trading pair "flash crash" was caused by low liquidity, leading to a momentary price fluctuation, with no liquidation occurring
BlockBeats News, December 26th, Solv Protocol's Business Development Lead Catherine announced that "Binance partnered with USD1 to launch a 20% fixed annualized deposit promotion. Many users swapped USDT for USD1, causing USD1 to briefly trade at a premium of around 0.39%. Some funds were then lent out through the Lista DAO lending market, using SolvBTC or SolvBTC-BTCB as collateral to borrow USD1 and gradually sold on the spot market to meet demand.
During this process, some traders directly used market orders to sell BTC against USD1. However, due to the thin liquidity of this trading pair, a large market sell order quickly wiped out the buy side, temporarily reducing the BTC price, only to be swiftly bought back up by arbitrage bots to restore the price."
CZ clarified regarding this event, stating that "This actually indicates that the exchange platform did not participate in the relevant trades. Due to the low liquidity of the newly listed trading pair, a large market order could easily drive a momentary price spike, but arbitrageurs quickly corrected the price back to normal levels. Additionally, since this trading pair was not included in any index, no liquidations were triggered."
You may also like
The arrival of the Web 3.0 era: A review of Hong Kong court rulings on digital assets
Track Markets At a Glance: New WEEX Price Widgets for iOS & Android
To streamline your market data access, WEEX has officially launched "Market Watchlist" desktop widgets
The billion-dollar lesson: The focus of DeFi security is shifting from code to operational governance
A Brief Analysis of Stablecoin Licenses and On-Chain Funding
BVNK Founder: Three Stages of Stablecoin Development
The truth about Trump's son's Bitcoin game: he made a staggering $100 million while retail investors lost $500 million
What Is Futures Trading? Hours, Platforms, and How to Start Trade Futures(2026 Guide)
Learn how to start futures trading, understand trading hours, and choose the best futures trading platform. Includes real data, strategies, and ways to maximize returns with rebates.
The Rise of Composable RWA
MAGA Up 350% in 24 Hours, PEPE Up 46% in One Day: Which Memecoins Are Next in 2026?
MAGA +350% in 24hrs. PEPE +46% in one day. RAVE +4,500% then -90%. In 2026's memecoin market, the gains are real. So are the traps? Here's how to tell the difference before you buy.
RCD Espanyol vs Real Madrid: Can the Pericos Delay the Inevitable?
RCD Espanyol vs Real Madrid lineups, standings, and stats for May 3, 2026. Real Madrid visits RCDE Stadium as Barcelona closes in on the LALIGA title. Full preview inside.
MegaETH goes live with an FDV exceeding 2 billion USD. Which ecological projects are worth paying attention to?
Dialogue with "Wood Sister" Cathie Wood: The next bull market is about to arrive
Can prediction markets win the competition for perpetual contracts?
Who is trading on Trade.xyz?
Binance quietly placed a bet on a leading large model company
Best Crypto Discord Server 2026: Why Jacob’s Crypto Clan Is Gaining Massive Attention
Jacob’s Crypto Clan has grown into one of the most active crypto Discord communities, with over 45K members and continuing to expand. This rapid growth reflects strong demand for structured trading insights and real-time collaboration.
Tom Lee Buying ETH: Why Wall Street’s Loudest Ethereum Bull Keeps Doubling Down
Tom Lee keeps buying ETH through every dip, every drawdown, and every moment of market doubt. Inside the strategy that's turning Ethereum into a treasury asset — and what it signals for the rest of the market.
Stripe Sessions 2026: AI Agent, Global Payments, and Invisible Crypto Infrastructure
The arrival of the Web 3.0 era: A review of Hong Kong court rulings on digital assets
Track Markets At a Glance: New WEEX Price Widgets for iOS & Android
To streamline your market data access, WEEX has officially launched "Market Watchlist" desktop widgets
The billion-dollar lesson: The focus of DeFi security is shifting from code to operational governance
A Brief Analysis of Stablecoin Licenses and On-Chain Funding
BVNK Founder: Three Stages of Stablecoin Development
The truth about Trump's son's Bitcoin game: he made a staggering $100 million while retail investors lost $500 million
Contents
Popular coins
Latest Crypto News
