A number of cryptocurrency tokens experienced significant price drops on April 1st, marking a notable day for the crypto market as some saw declines exceeding 60%. Tokens like Act I The AI Prophecy (ACT) plummeted nearly 58% in under an hour. These losses were attributed to speculation and events surrounding Binance’s leverage update.
The sudden price movements of these tokens, including memecoins such as sudeng (HIPPO), CZ’S Dog (BROCCOLI), Kishu Inu (KISHU), DeXe (DEXE), dForce (DF) and others, triggered a market reaction. While the broader crypto market saw a degree of volatility, major coins like Bitcoin remained relatively stable.
The situation is being closely monitored by the community, with the project behind Act I taking to X to address the situation directly, stating that they are actively investigating and working with parties involved. However, some speculate on the role of Wintermute, an algorithmic trading firm, in the market action.
Binance’s update of leverage and margin tiers for tokens like ACT on April 1st triggered substantial liquidations among whales. Speculation surrounds the potential involvement of Wintermute, as they reportedly liquidated multiple altcoin positions during the same time. Further investigation is required to confirm these claims.
The event raises questions about market stability and the role of certain institutions within cryptocurrency markets. It also highlights the importance of transparency and community engagement in navigating volatile situations.