A sudden and dramatic sell-off struck multiple cryptocurrency tokens on Binance today, causing a stir in the market and leaving traders scrambling for answers.
Incident on Binance
Tokens such as Act I, Prophecy (ACT), DeXe (DEXE) and dForce (DF) experienced sharp declines of up to 50% within 30 minutes. Data revealed a surge in selling volumes around 10:30 UTC, unique to these tokens. The trigger for this volatility was Binance's announcement of changes to leverage requirements and margin tiers for perpetual contracts, including the ACT/USDT pair.
Reactions and Opinions
Reactions on X included various opinions and speculations on the cause of the crash. Andrei Grachev, founder of DWF Labs, voiced confusion over the mass sell-off. Other users speculated that the margin changes on Binance created conditions for forced liquidations, leading to the price drop.
Consequences and Support
As a result of the token crash, ACT, DEXE, and DF remain among the biggest losers, down 46%, 22%, and 20%, respectively. DWF Labs has offered support to affected projects, stating their readiness to buy back tokens and craft a recovery plan.
The sudden token crash on Binance highlighted the importance of transparent communication and stable trading conditions to maintain trust in the cryptocurrency industry.
