The AI Prophecy token (ACT) has faced a sharp decline of over 70% in three days after Binance altered leverage and margin parameters for the ACT/USDT pair, leading to liquidations and forced sell-offs.
AI Prophecy Plummet
The AI Prophecy token began rapidly declining from April 1, losing nearly 60% of its value within an hour, dropping from $0.19 to $0.08. The market cap sunk by $96 million in the process.
ACT Investigation
The ACT team initiated an investigation to pinpoint the causes of the crash, resulting in a report attributing the main cause to Binance's changes.
Binance Adjustments
On April 1, Binance reduced the maximum leverage for ACT/USDT futures and changed margin tiers, giving only a 3-hour notice. This required traders to reduce their positions, triggering sell pressure and dropping the token's price by 57% on the first day.
The collapse of the AI Prophecy token serves as a striking example of how sudden changes on trading platforms can significantly impact asset prices and pose challenges to the crypto community.
