EMX Exchange Halts Trading of USOIL-Perp After Crude Oil Crash

In short:

For those of individuals who concerned about withdrawal, we are manually confirming all transactions and everyone ought to get it back within 1-3 organisation days. We excuse the inconvenience.

Such a scenario of negative costs of US Oil futures agreements had not been expected by the team at the EMX Exchange. As a result, the group chose to stop the trading of its USOIL-Perpetual contract.

USOIL-Perp Chart thanks to EMX.comUnexpected Sequence of Events.

Additionally, the group has halted withdrawals as they confirm all transactions. They described this in a follow up of the very first statement.

For those of individuals who worried about withdrawal, we are by hand verifying all deals and everybody must get it back within 1-3 company days. We excuse the inconvenience.

As earlier mentioned, very couple of traders and financiers had actually prepared for that the cost of United States Crude Oil futures contracts would go into unfavorable territory. The team at EMX has actually likewise described that such a situation had not been prepared for. They have actually since issued the following statement by means of Twitter describing the scenario at hand.

We are currently investigating ways to progress with USOIL-PERP due to negative underlying rates, an edge case that we had actually not built for.

Everybody was stunned when US Oil prices hit absolutely no and international futures agreements fell hard into negative area..
Such an occasion had actually not been prepared for by the team at the EMX exchange..
The team halted trading of its USOIL-Perp contract..
Trading of the perpetual agreement is yet to be resumed as the team chooses a method forward.

EMX Exchange Halts Trading of its USOIL-Perp.

Yesterdays price movement of United States Crude Oil shocked everyone. Most of traders were positive that the price of the valuable product would not break the different support zones that were last seen in the 1980s. The WTI Crude Oil chart went right through the years strong assistance zones at $15, $12 and $9. The rate per barrel went to zero as futures contracts went into unfavorable area as low as $-40.

— EMX (@TradeEMX) April 21, 2020.

Whats Next for USOIL-Perp Traders on EMX?

The price per barrel went to zero as futures contracts went into negative area as low as $-40.

( Feature image courtesy of Erwan Hesry on Unsplash.com.).

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Such a scenario of negative costs of United States Oil futures contracts had actually not been expected by the group at the EMX Exchange. As a result, the group decided to stop the trading of its USOIL-Perpetual contract. As earlier mentioned, really couple of traders and financiers had anticipated that the rate of US Crude Oil futures agreements would go into negative area. The latter consists of continuous contracts on Bitcoin (BTC), Ethereum (ETH), EMX token, ChainLink (LINK) and Tezos (XTZ).

As the interruption only affects the USOIL continuous agreement, trading of other agreements on EMX is still much active. However, traders who expected the Crude Oil crisis and chose to go SHORT, may need to wait till the team at the exchange picks a method forward.

More About EMX Exchange.

Founded in 2017, the Evermarkets Exchange (EMX) has a vision of revolutionizing the international derivatives markets. The exchange does this by allowing users to trade contracts on equities, currencies, commodities as well as popular cryptocurrencies. The latter includes perpetual contracts on Bitcoin (BTC), Ethereum (ETH), EMX token, ChainLink (LINK) and Tezos (XTZ).