ACT Memecoin Drops 53% as Multiple Altcoins Plummet on Binance
On Tuesday, several altcoins experienced significant price drops on Binance, with some plunging up to 50%. The cryptocurrency community speculated that adjustments in the exchange's position limits may have triggered these fluctuations.
Altcoins See Q2 Opening Crash On Binance
Key events include:
- Act I: The AI Prophecy (ACT) dropped approximately 53% from $0.189 to $0.087 in about 30 minutes.
- Other tokens such as DEXE, KAVA, and HIPPO declined by 10% to 35% within an hour.
- ACT's market capitalization fell from $722 million following this crash.
- ACT's team is investigating the incident and developing a response plan.
- Analyst Altcoin Sherpa indicated a potential bounce but noted low trading interest.
No April Fool’s Joke
Amid rumors, Evgeny Gaevoy, CEO of trading firm Wintermute, denied involvement in the sell-off. Lookonchain suggested that Binance's recent leverage updates might have caused the price decline.
- Binance reported that three VIP users sold tokens worth 514,000 USDT, while another user sold 540,000 USDT worth of ACT.
- This led to futures contract closures, further impacting other altcoins.
- Binance stated it adjusted leverage multiples downward to prevent similar incidents.
- The exchange will continue its investigation and advise caution in the volatile market.
