On the evening of Sunday, April 7, users of Ethereum suffered an unexpected setback in their statements. According to the sources, a malicious attack on the exchange house Kraken caused a momentary fall of 70% in the price of Ether in the indices of the platform.
As established the exchange platform established in San Francisco, USA. its platform was trapped by a strong DDoS attack, a type of cyber attack in which a flow of information is generated from several connection points that leads the network to collapse. Apparently, the DDoS attack had such an impact on the Kraken platform that orders at Ether slowed to a great extent. According to anonymous traders who were affected by the attack, the destabilization of the system was such that two orders placed at different prices were executed simultaneously.
It is likely that many traders have used the parameter known as Stop Loss, which is a method to close an open purchase order in case the price falls to a limit previously set by the trader; This in order to avoid losses on the scene of an unexpected fall. Perhaps the despair of the users in the impossibility of carrying out their transactions has motorized the decline of the price of the currency and the activation of the Stop Loss, creating a negative cascade in the price. However, once stability was restored, the price of ether resumed its initial behavior.
Other exchange houses like Poloniex also experienced a destabilization in their platform, although without suffering major consequences. For its part, Kraken managed to restore normality in its website and API, although they state that the support still presents a degraded performance.
They say that because of the large number of orders they are experiencing, it could take 2-3 days or longer to respond in some cases, adding that they are closely monitoring and conducting a detailed investigation of the event to fully restore normal operation..