XRP price surges to $50 on Gemini: What happened?

XRP price to $50: Screenshots and confusion

Multiple users of the Gemini exchange shared screenshots on the internet showing the XRP price reaching $50 and then quickly plummeting back down. Other users also posted screenshots of the XRP price exceeding $1. However, the actual value of XRP on other exchanges during this incident never went above 65 cents.

Possible cause: Lack of liquidity on Gemini

The reason behind the absurd price surge is likely due to a lack of liquidity on Gemini. Since the token had just been relisted, there were very few orders present. An observant Gemini user noticed that at one point, there were almost no pending orders in the queue.

Subsequently, someone placed a sell order for 1322 XRP tokens at $50 each. What most likely happened is that someone accidentally placed a large buy order. Unfortunately, this individual ended up paying too much for their XRP.

Gemini exchange temporarily shut down

Gemini has not yet responded to the incident. However, all services on the platform have been temporarily shut down for maintenance.

“We are currently undergoing maintenance, and therefore, all services have been halted. All user assets are secure. We will provide updates as more information becomes available.”

According to Gemini, it is unknown whether the maintenance is related to the Ripple chaos. However, it is clear that there was a severe lack of liquidity available in the hours following the relisting. Unfortunately, an inattentive customer of the exchange became a victim of this situation. Therefore, it is advised to be cautious when placing a market order during times of limited liquidity.

Conclusion

The XRP price surge to $50 on Gemini was a result of a lack of liquidity on the exchange. The incident caused confusion and temporarily halted Gemini’s services for maintenance. Users need to exercise caution when trading during periods of low liquidity to avoid any unintended consequences.