Binance Altcoin Prices Plummet Following Significant Selling Pressure
Binance faced criticism after a significant price crash affected multiple tokens, including ACT, which fell nearly 57% on April 1 and an additional 23% the following day. Other tokens like DEXE and DF also experienced sharp declines.
Key Events
- ACT dropped from $0.189 to $0.087 in thirty minutes.
- Speculation arose regarding automated trading bots' involvement or potential market manipulation.
- Wintermute, a market-making firm, was implicated but denied responsibility.
- Binance attributed the crash to three VIP users selling 514,000 USDT of tokens and a non-VIP user offloading 540,000 USDT of ACT.
- Analysts highlighted Binance's recent margin updates as a possible trigger for mass sell-offs.
Wintermute has previously been involved in similar controversies, accused of causing market volatility and withdrawing liquidity from Automated Market Makers (AMMs), leading to crashes over 60% for some tokens. The crypto community remains skeptical about these incidents and their implications.