On April 1, 2025, a sudden crash occurred on Binance, where several altcoins suffered significant losses. Assets like ACT, DEXE, and DF rapidly lost up to 50% of their value.
Crypto Crash on Binance: Rapid Price Declines
Despite a generally rising cryptocurrency market, ACT, DEXE, and DF recorded severe drops ranging from 20 to 50% within minutes. ACT notably lost 50% of its value.
Role of Margin Adjustments
Binance adjusted the margins for several perpetual contracts, including that of ACT. These adjustments may have caused a leverage effect, triggering automatic liquidations of positions.
Impact of Market Makers on Altcoin Drops
According to data from Arkham, market maker Wintermute allegedly sold a large quantity of ACT tokens on the same day, contributing to the price decline. Such actions can create a squeeze, leading to massive selling and further position liquidations by traders.
The incident on Binance highlights the fragility of altcoins in the evolving crypto market. The future of altcoins will depend on their ability to deliver real value and cope with volatility.
