u.today
Top Dogecoin developer Mishaboar has sounded the alarm to users on the Bitpanda platform as concerns misalignment between some of the exchange’s leveraged pairs. According to Mishaboar, there is a likelihood that some people have lost money without realizing it.
Bitpanda’s leveraged pairs under scrutiny
The DOGE developer’s comment in an X post was in reaction to another user, Still_Salty_624 (@StillSalty624), about the leverage cause offered by Bitpanda. Mishaboar noted that some leveraged pairs, including DOGE pairs, may be underperforming due to the issues with Bitpanda.
If you are playing with leverage on @Bitpanda, there is an ongoing issue with a misalignment between some of their leveraged pairs (including $Doge pairs) and the underlying assets’ performance.@StillSalty624 was the first to find out about it, and it seems the issue is still… https://t.co/k2IdZlorzR
— Mishaboar (@mishaboar) July 17, 2024
According to the explanation, there are inconsistencies on the platform. For instance, the “volatility” of Dogecoin has a real asset volatility of 20%. However, on Bitpanda, the 2x trade offer is at an astonishing 70%. Although Bitpanda disabled the leveraged token after confirming the issue, there are lingering concerns that some users might have lost out by liquidating due to the incident.
Surprisingly, trading resumed afterward without addressing the issue or alerting users of a possible challenge with the platform. However, U.Today observed that the Bitpanda team has responded to Still_Salty_624, acknowledging it was aware of the challenges and working to fix it.
“We are aware of this issue and our team is doing all they can to fix it as soon as possible. Potential financial losses caused by this incident will be reimbursed by Bitpanda, should the root cause be discovered to be on our end. Thank you for your patience and understanding,” Bitpanda wrote.
Past incidents and need for proactive measures
Back in 2023, Bitpanda was in the news concerning a noteworthy transfer of assets, including SHIB, LINK, CHZ and other altcoins worth a staggering $73 million at the time. The transfer had sparked panic among users as to the possible reason and whether their funds were safe.
Tech experts say the Bitpanda team needs to be proactive in keeping its community abreast of developments on its platform. Particularly, issues such as the leveraged pairs that impacted users should have been addressed without waiting for complaints.
The Dogecoin developer is known to always watch out for the community through related warning calls.