Some of Wall Street’s most prominent players ran a cryptocurrency data network that showed a nearly 90% drop in Bitcoin on Monday. This glitch didn’t appear on any other platforms.
Pyth is a platform that provides pricing information for assets such as stocks and cryptocurrencies. It has been praised by its supporters. Finance giants Jump Trading Group, DRW, and FTX are among its contributors.
It reported Bitcoin’s value at $5,402. Pyth tweeted Monday morning that engineers are still investigating the issue and that a complete report is being prepared. Pyth has not tweeted further on the subject.
This is a serious error for a system which gets its information from the most skilled traders.
In a June interview, Joe Molluso, copresident and chief operating officer of Pyth contributor Virtu Financial Inc. stated that data is essential for something like this to work.
Things are back to normal on Tuesday. Bitcoin’s current price was $41,888. This is close to the prevailing levels.
It is the second most recent problem. Pyth is connected to the Solana Blockchain, which was down for 17 hours last week. This outage also brought down Pyth.
Continue reading: What the Solana Blackout reveals about the fragility of crypto
It is not clear how widespread the problems caused by the Bitcoin crash on Pyth. Bonfida’s Twitter account, which is based on Solana’s Solana platform, stated that the decline had ’caused a series liquidation events on Audaces protocol BTC/PERP market (unfortunately not working as intended). Audaces is Bonfida’s perpetual futures platform.