An interesting situation occurred with Wrapped Bitcoin, which was launched in 2019 to offer Bitcoin investors the option to use the asset in decentralized finance applications.
The price of Wrapped Bitcoin on Binance crashed on November 23, falling to an all-time low of around $5,200.
While the price of WBTC on Binance experienced a sudden crash, its price on other exchanges remained unaffected.
The price of WBTC returned to normal in a short time and reached market standards.
While the reason for the sudden drop is not yet clearly known, experts argued that low liquidity may have been effective in this sudden collapse. Experts speculated that a large-scale market sell order entered regarding the incident may have caused the price to drop suddenly due to low liquidity. Because such events can cause short price crashes and sudden price fluctuations.
Coinbase Had Delisted!
As you may recall, Coinbase recently announced that it would delist Wrapped Bitcoin.
This sudden price crash occurred a few days after Coinbase's delisting announcement, with the exchange stating that they made the delisting decision for WBTC because it did not meet the listing criteria in their regular reviews.
WBTC continues to trade at $98,010 at the time of writing.
*This is not investment advice.
