An unexpected event occurred in the price of Stargate Finance (STG), which is listed on Binance. The STG price lost 87% of its value in seconds on Binance, causing investors to panic.
STG price dropped to as low as $0.0525 but then quickly recovered to around $0.38.
Experts predict that low liquidity in the trading pair and a massive sell-off could be behind this sudden and sharp decline.
Experts also noted that this decline in STG once again shows the importance of staying away from too much leverage and that trading without a stop-loss is risky, even in a bull market.
What is Stargate Finance (STG)?
Stargate Finance (STG) is a multi-chain native asset bridge designed to solve the blockchain trilemma that says no blockchain can be decentralized, secure, and fast at the same time. It does this by simplifying cross-chain DeFi transactions that allow users to transfer and exchange their assets between different blockchains, layer-2 networks, and decentralized applications (dApps) almost instantly.
Stargate users can also move their assets between different liquidity pools on various decentralized finance (DeFi) protocols and dApps.
The protocol supports transfers between eight chains: Ethereum (ETH), Avalanche (AVAX), Polygon, Metis, BNB Chain, Arbitrum (ARB), Optimism (OP), and Fantom (FTM).
*This is not investment advice.
