BINANCE REPORTS PRICE CRASH DUE TO SALE OF ACT TOKENS BY 3 VIP USERS.
Binance has issued a statement addressing the recent sharp drop in the price of several meme coins, including ACT, which experienced substantial volatility on April 1. The exchange revealed that the price drop was caused by the actions of four users. Three VIP users sold ACT tokens worth 514,000 USDT on Binance’s spot market within a short timeframe, while one non-VIP user deposited a large amount of ACT into their account and sold approximately 540,000 USDT worth of the token.
The combined sell-off resulted in a significant decrease in $ACT price, leading to the liquidation of certain futures positions and affecting the value of other low-market-cap tokens. Binance clarified that it did not identify any single account that profited greatly from this incident. The platform noted that ACT tokens are entirely circulating in the secondary market, making it impossible to prevent sales. However, Binance assured users that it is actively investigating the situation and will provide updates as new information emerges.
Binance also emphasized its regular adjustments to leverage levels based on market conditions, such as liquidity and trading volume. Following the incident, the exchange reduced leverage for the ACT USDT perpetual contract. Binance stated that no market anomalies were observed during this adjustment, and no positions were forcibly closed.
To enhance liquidity, Binance encourages market makers to participate by offering incentives. Additionally, the exchange reminded users to practice proper risk management when trading digital assets, as market conditions can change rapidly.
