Market Analysis Report (07 Jun 2019)

Circle-owned cryptocurrency exchange Poloniex announced that “on May 26, a sudden, severe price crash in the Clams (CLAM) market caused a number of margin loans to default, resulting in a roughly 1800 [bitcoin] BTC generalized loss in the Poloniex BTC margin lending pool.” In today’s rates, 1800 BTC equals over $13 million.

On Poloniex, it is possible for margin traders living outside the U.S. to collateralize their loans with any cryptocurrency available for lending, even if it’s a cryptocurrency with low liquidity. In their announcement, Poloniex told readers that, in an effort to “protect lenders,” they had decided to remove margin trading for four cryptocurrencies particularly illiquid cryptoassets: BitShares (BTS), Factom (FCT), MaidSafeCoin (MAID), and, of course, CLAM.

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