USDC at PLN 2,96? Crash of the stablecoin rate on Binance

The USDC/PLN and BTC/PLN currency pairs have collapsed dramatically on the world's largest cryptocurrency exchange. Binance manipulated? Or maybe the USDC stablecoin is not fully secured and its rate detached as a result of insider selling? There have also been theories that the price drop is indirectly caused by Phil Konieczny, one of the most influential figures on the Polish cryptocurrency scene.

What really caused these sudden and massive declines? Let's take a closer look at the whole situation.

Binance exchange prices crash

On June 15, there was a sharp drop in exchange rates. Bitcoin and USDC against the Polish zloty, as can be seen in the chart below  chart.

In a short period of time, Bitcoin lost over 13% and USDC fell over 17%, before both assets quickly rebounded back to their previous levels. The source of this sudden volatility has not been clearly established, but there has been speculation in the community that it may have been caused by an organized selling campaign by a larger group of investors.

Some observers suggest that the move could have been the work of a group associated with Phil Konieczny, who allegedly withdrew from PLN positions at one point, causing a temporary liquidity breakdown on the market. It should be noted, however, that these are only assumptions that have not been officially confirmed and require further verification.

The collapse of stock prices and the execution of large stock exchange orders

One of the most characteristic elements of candlestick charts are the so-called wicks, which are thin lines extending above or below the body of the candle. The upper wick represents the highest price that a given instrument has reached during a time interval (e.g. one hour, one day), while the lower wick indicates the lowest price level. Although often ignored by novice investors, wicks carry a valuable information about market dynamics, especially about temporary liquidity disorders.

Such sudden breakouts, which create long wicks, are usually the result of sudden market orders (so-called "market orders"). A "market" order is to buy or sell a given asset immediately at the best available price. In the case of small transactions, the effect of such an order is usually small, because it is satisfied at the nearest levels of buy or sell offers. However, in the case of large volumes, the situation is completely the opposite and just like in the presented markets with PLN.

The cryptocurrency market, despite its high capitalization, is still characterized by relatively low liquidity compared to traditional markets, especially in currency pairs with less popular currencies, such as the Polish zloty. If a trader places a high-value market order, the system automatically “clears” subsequent levels of the order book, going lower (when selling) or higher (when buying) until the entire order is fulfilled. The result is a sharp price movement, often divorced from the actual market valuation. On the chart, this is manifested in the form of a long wick.

For this reason, it is not recommended to carry out large transactions via market orders. Not only can they cause sudden price drops or increases, but they also lead to slippage, i.e. executing a transaction at a much less favorable price than the one the investor initially saw. A similar risk also applies to buyers - a large market order can "suck" the sale offer from higher levels, causing the cryptocurrency to be purchased much more expensively.

This is why the standard among more experienced market participants looking to take a larger position is to use limit orders, which give you more control over the price at which the transaction is executed, even at the cost of waiting a little longer for it to be executed.

Summary

The sudden declines in USDC and Bitcoin rates against the Polish zloty on the Binance exchange have highlighted the importance of market liquidity and order execution, especially for less popular currency pairs.

While there has been no official information confirming manipulation, the incident shows that even the largest platforms can experience very rapid price movements. Phenomena such as candle “wicks” are a natural result of temporary liquidity disruptions, often caused by large “market” orders.

For investors, especially those operating with larger capital, this situation is an important reminder of the need for careful order management and awareness of the structure of the market in which they operate.