Ethereum Classic (ETC) in the US-based Coinbase, one of the leading cryptocurrency exchanges, is significantly different from other exchanges. At around 20.00, the price of ETC on Coinbase Pro increased up to $ 15. In the same minute, however, the price on Binance and other exchanges was about $ 8.8. ETC traded on Coinbase at a 70 percent premium.
Coinbase found the solution to avoid this price difference by closing market orders. As it is known, it is possible to place orders without entering any target price in market orders and this increases the slippage in price.
In the statement made by the stock exchange; It was stated that market orders are closed on all ETC trading pairs and only limit order option is available. After this decision, the ETC price fell to $ 12, but is still 40 percent higher than the rest of the market.
What is the reason for the price difference?
The biggest reason for the difference in price is that arbitragers are currently unable to use Coinbase Pro in ETC. 91,000 block approvals are required for ETC deposits on Coinbase Pro. This means that when ETC is transferred to the stock market today, this money will be credited within 2-3 weeks. Coinbase extended this long confirmation period to avoid damage from attacks on the Ethereum Classic blockchain. ETC has been attacked many times in the past.