Binance recently adjusted leverage and margin tiers for multiple tokens, including ACT. A whale liquidation of $3.79 million at $0.1877 followed. Consequently, ACT plunged over 50%. Several altcoins on Binance crashed, despite broader market stability. Tokens like DeXe (DEXE), dForce (DF), KAVA, HIPPO, BANANAS31, LUMIA, TST, and QUICK fell sharply within minutes.
ACT’s price decline may be linked to Binance's margin adjustments. However, other tokens affected by these changes did not experience similar crashes. This inconsistency has sparked speculation about the real cause of the sudden drop.
Some traders suspect the new ACT perpetual contract’s margin requirements triggered an unexpected squeeze on a market maker’s positions. If true, the automated trading bot might have liquidated other tokens to hedge losses. Additionally, Arkham data suggests that Wintermute, a known market maker, sold a substantial volume of ACT tokens on April 1.
Binance later attributed the sell-off to spot market sales from four accounts. Three VIP users sold around 514 million USDT worth of ACT, while a non-VIP user offloaded 540,000 USDT of ACT after making a deposit. As a result, these sales led to forced liquidations in ACT futures, cascading into declines in other low-cap tokens.
ACT played a crucial role in last year’s AI memecoin craze on Solana. It merged artificial intelligence hype with memecoin speculation, drawing significant interest. At its peak, ACT’s market capitalization exceeded $890 million. However, it has since collapsed by over 85%, currently hovering around $95 million. As of writing, ACT trades at $0.060046, down 24.49% in the past 24 hours. The token’s 24-hour trading volume stands at $1,567,506.
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