Binance Altcoin Bloodbath: The Traders Stunned as Altcoins Sharply Tumble
Despite an increase in the global cryptocurrency market, a basket of altcoins fell on Binance earlier today. Data revealed that within minutes, tokens such as the on-chain DeFi liquidity network dForce (DF), the decentralized finance social trading platform DeXe (DEXE), and the Solana memecoin Act I The AI Prophecy (ACT) fell between 20% and 50%. Other tokens, like LUMIA, TST, QUICK, HIPPO, BANANAS31, and KAVA, also experienced a decline.
The collapse of ACT might have been caused by modifications to Binance’s leverage-trading platform. For ACT and five other altcoins, the centralized cryptocurrency exchange announced changes to the margin on perpetual contracts. Nevertheless, onlookers were left wondering why the other coins mentioned in the updates did not show such steep price drops.
Mass Liquidation? Market Maker’s ACT Perp Bet Sparks Panic on Binance!
Social media users speculated that a market maker’s positions were unexpectedly squeezed by the margin on Binance for the new ACT perp contract. If that were the case, the market maker‘s automated trading bot may have liquidated other tokens to protect against losses. Furthermore, market maker Wintermute sold off a significant quantity of ACT tokens on April 1, according to The OnchainData Nerd, which cited Arkham data.
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