The ACT token price continues to drop, ever since a sharp price drop was recorded yesterday.
Binance is investigating to determine the actual reason behind the price drops of tokens such as DEXE and DF.
Binance’s preliminary investigation revealed that 4 users sold large amounts of ACT tokens yesterday, which led to its price crash. The crypto market showed a slight recovery yesterday as Bitcoin started to trade above the $83K price level. Overall market cap has also increased as major altcoins recorded considerable price surges. On the contrary, several altcoins and memecoins crashed severely yesterday.
ACT stood out among the other altcoins that dropped significantly. This is because it recorded around a 50% price drop within a few minutes in the Asian evening hours of the market. DEXE, DF, TST, LUMIA, KAVA, and QUICK tokens also recorded price drops, spreading panic in the market.
ACT Price (Source:CoinMarketCap)
ACT is the AI meme token of the Solana-based The AI Prophecy project. It is one of the noteworthy memecoins that recorded substantial gains during the AI memecoin mania in 2024. The token was trading in the $0.189 price range before the crash. It is now trading at a $0.069 price level with a 63.45% price drop in the last 24 hours.
Binance Responds to the ACT Price Crash
Binance published a statement a few hours after the price crashed. Its preliminary investigation found that 4 of its users combinedly sold over $1 million worth of ACT tokens on the platform. While 3 VIP users sold 514,000 USDT worth of ACT, one non-VIP user sold 540,000 USDT worth of the memecoin.
Binance also clarified that it didn’t identify a single account that made significant profits from this price drop. This made the investigation further intriguing. The large token sell-off might cause the ACT price to crash. This further resulted in the liquidation of several ACT futures’ positions. Binance said that it will continue its investigation into the reasons for other token declines as well.
Several crypto market experts attributed this price crash to Wintermute market maker. Onchain Data Nerd posted that Wintermute sold a lot of memecoins, which is the reason behind this big dump. Another X user made a detailed post stating that Binance’s adjustment in the margin positions of these tokens triggered a chain reaction and resulted in the market plunge.