Popular Dogecoin Developer Raises Concerns About Bitpanda Leverage

Popular Dogecoin Developer Raises Concerns About Bitpanda Leverage

Jul 17 Tech Standard

Top Dogecoin developer Mishaboar has warned users on the Bitpanda platform about potential issues with some leveraged pairs. This comes after concerns arose regarding a possible misalignment between the actual volatility of certain assets and the leverage offered by Bitpanda.

Mishaboar pointed out inconsistencies, highlighting how Dogecoin's real volatility is around 20%, while Bitpanda's 2x leverage offer reached a staggering 70%. This significant discrepancy raises concerns that users might be losing money unknowingly.

While Bitpanda disabled the leveraged token after acknowledging the problem, some users might have already faced losses due to liquidation during the incident. The platform resumed trading without addressing the issue or notifying users of the potential challenge.

However, Bitpanda did respond to user concerns, stating they are aware of the problem and working on a fix. They have also promised to reimburse potential financial losses caused by the incident if it's found to be on their end.

This incident highlights the need for proactive measures by Bitpanda. Back in 2023, a large asset transfer sparked user panic. Tech experts believe the platform needs to improve communication and keep its community informed about developments, especially those that could impact user finances. Mishaboar's warning serves as a reminder of the importance of developer vigilance in protecting crypto communities.

HarshitKulhan

Crafting cinematic stories through the lens of my phone, I am a blogger and content writer who expresses the essence of my blogs through words

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