Following CLAM Cryptocurrency crash, investors who took a share of it will receive payouts through Bitcoin soon, Poloniex has announced.
Just recently, a blog post released the news that Poloniex exchange will indemnify those adversely affected by a market crash way back in 2014. The compensation will be awarded to those who invested in CLAMS, a crypto that is regarded to be very obscure by former investors. The firm announced that it, among other things, will give trading fees back to those affected dating back from 2014 to June this year. A flash crash in the CLAM margin market is responsible for the losses experienced at the time. The airdropped token was awarded to Bitcoin and Litecoin at the time as Poloniex in the meantime permitted Margin Trading till a single flash crash wiped out about 1800 bitcoin worth of value. The loss was worth about $13.5 million in total at that time.
The loss had devastating effects as CLAM shed almost 77% within a matter of minutes; traders were thrown in panic mode and did not know what step to take next.
In such tragic events, a finger of blame must be directed somewhere, Poloniex pointed a finger to the sudden tumble to the speed at which sales were made at the time as the company lacked enough money to keep up with trading activities. Poloniex further went on to chase borrowers who failed to clear their outstanding payments. However, the eventuality of all this is yet to be established, and no information is out as to whether someone faced the law.
This year will be an excellent year for investors who lost their investments during the flash Crash. In June this year, Poloniex came out and stated that it would pay back the investors who lost considerable assets during the crash. Further, it is claimed that the company will cover all the expenses incurred by traders, including trading fees. Accounts of the victims of the flash crash were credited with 180 bitcoins shared among 10% of all those who were affected. The company made new policies to enable lost Bitcoin funds to be given back to it by nixing the exchange fees until that point they are fully repaid.
After the crush, Poloniex learned valuable lessons going forward, and it shut all margin trading on CLAM, BTS, MAID, and FCT. For sure, this will be a lesson the company will never forget.