Ethereum is plunging despite flash-crash victims getting their money back

Ethereum is under pressure on Monday, trading down 13.26%, or $US40, near $US263. The selling comes despite a blog post from GDAX saying that victims of last Wednesday’s flash-crash will be made whole. Ethereum tumbled from $US296 to $US0.10 in a matter of minutes before recouping those losses.

We will establish a process to credit customer accounts which experienced a margin call or stop loss order executed on the GDAX ETH-USD order book as a direct result of the rapid price movement at 12.30pm PT on June 21, 2017,” GDAX announced on Friday evening. “This process will allow affected customers to restore the value of their ETH-USD account to the equivalent value of their ETH-USD account at the moment prior to the rapid price movement.”

The announcement was a change from an earlier blog post from GDAX, which stated that customers would not receive a refund.

Another possible catalyst for the selling could be a hoax circulated over the weekend that cofounder Vitalik Buterin had died. Vitalik responded by posting a tongue-in-cheek selfie on Twitter with a hash code from a recent Ethereum block — proof that he was still alive.

Even with Monday’s selling, Ethereum is still up 3,181% in 2017. The cryptocurrency’s rapid rise has drawn the attention of cybersecurity pioneer John McAfee, who on Friday announced his company would begin mining for Ethereum.

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