The ALPACA token became highly volatile following a delisting alert, provoking significant price fluctuations and discussions across social platforms.
Sharp Price Movements of ALPACA
The ALPACA token experienced a spike of 800% after the announcement of its potential delisting on May 2, 2025. This occurred after the release of new tokens PDA, VIB, and WING on April 24. However, by April 28, ALPACA had lost over 50% of its value in just one hour.
Impact of Short Positions on the Market
Reports indicated that over 75% of traders went short on ALPACA, leading to a daily funding rate approaching 20%. This situation resulted in significant losses for short sellers, while temporarily pushing the token's price higher before its subsequent drop.
Community and Alpaca Finance Team Response
The Alpaca Finance team continued to support its ecosystem by burning over 34.98 million ALPACA tokens, constituting 18.61% of the total supply. Despite the volatility, the team confirmed that the token remains tradable on platforms like WhiteBit and continues to develop DeFi initiatives.
The price movements of the ALPACA token highlight significant issues related to liquidity and investor trust following delistings on centralized exchanges. The token's future remains vulnerable due to market manipulation and regulatory changes.
