Wall Street Crypto Platform Shows 90% Bitcoin Drop

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A so-called cryptocurrency data network which is still in its test face, showed a staggering drop for Bitcoin last Monday. In a faulty reporting that didn’t show up on other major crypto platforms like Binance and Coinbase, the Pyth platform, sponsored by some of Wall Street’s biggest firms, briefly showed Bitcoin dropping from $45,000 to a price of $5,400, or a 90% drop in a matter of minutes.

Real-world data

Finance giants like Jump Trading Group, DRW and FTX created Pyth, which is, according to its Twitter bio designed to bring real-world data on-chain on a sub-second timescale.

Between 12:21 and 12:23 UTC the Pyth BTCUSD aggregate price was below $40,000 – the lowest price reported was $5,402 with a confidence interval of $21,623 (4x the asset reported price) for a single slot – which was off-market relative to the BTC price available on other markets

— Pyth (@PythNetwork) September 20, 2021

Of course it is unknown how Wall Street traders using this platform reacted to the sudden drop as Pyth was quite brief in its explanation.

Pyth’s press department explained that:

Engineers are continuing to investigate the cause and a full report is in the works.

Pyth core contributors collaborated on a root cause analysis of yesterday’s bad BTC/USD prices, including what caused it and corrective actions:https://t.co/orNTe8opQX

— Pyth (@PythNetwork) September 22, 2021

By Tuesday though, the Bitcoin price on Pyth was trading normal again, showing a price of $41,888, close to what other digital platforms had.

By Wednesday, Pyth released a longer report, claiming that:

The issue was caused by the combination of (1) two different Pyth publishers publishing a near-zero price for BTC/USD and (2) the aggregation logic overweighting these publishers’ contributions

I’m guessing everyone who traded on that network would like to know where Pyth got its information from.

peshkova / Depositphotos.com