The AI Prophecy (ACT), a Solana-based AI meme coin, plunged 50% in 30 minutes on Binance, dropping its market cap from $179.6M to $90.8M. Here’s what caused it.
Binance Leverage Shift
At 10:30 UTC, Binance cut ACT’s perpetual contract leverage to $4.5M max at 1x and tweaked margin tiers. A market maker, possibly holding $80M in contracts, faced forced liquidations, dumping positions and crashing futures prices.
Spot Market Collapse
Thin liquidity couldn’t handle the sell-off. A 500M token order and $3.79M in liquidations widened the spot-futures gap, sparking panic sales and dragging prices down further.
Market Maker Dump
A whale—rumored to be Wintermute—offloaded $73M of a $100M stash, per onchain data. This, alongside crashes in DEXE (-30%) and DF (-20%), suggests a broader market maker issue or bot glitch.
Weak Foundation
ACT’s team, criticized for dodgy token sales, couldn’t steady the ship. Already down 85% from a $890M peak, its hype-driven, illiquid market buckled under pressure.
Takeaway
Binance’s rule change, liquidations, and shaky fundamentals fueled ACT’s 50% crash. If this isn’t your "ACT" or 51% was exact, clarify—I’ll adjust. What’s your take?
