A heated debate in the cryptocurrency community has ensued following last week’s dip in the prices of cryptocurrency. In the debate, a portion of the cryptocurrency community wants the price of cryptocurrency manually fixed to control market crashes. Members supporting price-fixing say they want to protect the crypto market.
Manually Adjusting Cryptocurrency Prices
After the recent cryptocurrency price meltdown, some members of the cryptocurrency community want prices manually fixed. These people want some means of automatically controlling prices should it fall below some specific level to be put in place. However, cryptocurrency current consensus has no such provision.
Last week, Bitcoin shedded 32% of its market cap just in a matter of minutes after plummeting to below $5000. Usually, in the financial market, such crashes are inevitable but not as much as that of Bitcoin recently. But the stock market is safe by such automatic stoppages that help safeguard the market.
Recently trading at the NYSE and NASDAQ were suspended because the S&P 500 index opened 7% below the previous day’s value. This is, however, the second time suspending trades are happening within the two biggest US equity houses. Other suspensions soon followed when the Federal reserve dumped $700 billion into the Economy.
Circuit Breakers to Protect the cryptocurrency markets
The recent crash of the cryptocurrency provides a strong argument for a circuit breaker deployment to control the price of the cryptocurrency. Members of the cryptocurrency community who support putting a price reset argue that the recent crash destroyed the cryptocurrency market structure. They called upon leading exchanges to work together and get it done and prevent the same from repeating.
The recent crash almost caused the Entire Defi ecosystem to perish. Furthermore, the crash put many traders out of business. The additional turmoil was due to retailers who use cryptocurrency as well. According to the supporters of the automatic price adjustment tool, the long term success of crypto depends on the capacities of exchanges to absorb price turbulence.