WalletConnect’s $WCT token plunged over 60% in hours, sparking panic selling, speculation of manipulation, and widespread concern across the crypto market.
A flash crash erased $WCT gains, exposing vulnerabilities in crypto trading, from liquidation cascades to whales’ sell-offs and lack of project transparency.
The sudden $WCT collapse triggered wider market volatility, investor distrust, and urgent calls for improved risk management and clearer communication in crypto ecosystems.
At the end of May 2025, the cryptocurrency market was shaken by a major incident. WalletConnect’s native token, $WCT, suddenly flash-crashed from a high of over $1.30 to rock bottom, shocking investors and the entire community.
Source: Binance
Within just a few days, prices fluctuated violently, and market sentiment was extremely unstable. What exactly triggered this turmoil, and what kind of impact might it bring?
FLASH CRASH PROCESS: FROM HIGH TO BOTTOM
The flash crash of $WCT occurred between May 30 and May 31, 2025. The price movement was jaw-dropping. From a high of over $1.30, it dropped rapidly.
Within just 3 hours, the price plummeted by 31%, falling from $1.39 to around $0.60. On May 31, it hit a low of $0.5083, representing a drop of more than 60% from its recent peak.
This “waterfall-style” decline was described by the community as a typical flash crash, showing signs of panic selling and extremely high market activity.
The rapid drop caught investors off guard. Many in the community commented that the move was unusually violent and began discussing the logic behind the market action.
Source: Wallet Connect
ABOUT WALLETCONNECT
WalletConnect is an open-source Web3 communication protocol that was launched in 2018. It is dedicated to connecting crypto wallets with decentralized applications (DApps) through encrypted methods such as QR code scanning and deep linking.
It is often referred to as the “Visa of Web3.”
The token $WCT supports fee payments, rewards, staking, and governance functions. The total supply is 1 billion tokens.
ANALYZING THE CAUSE: MULTIPLE FACTORS AT PLAY
The causes of this flash crash are complex and involve both market dynamics and external factors.
Analysts believe it was a typical “long-liquidating-long” event: the open interest increased sharply at the high price zone, but the ratio between long and short positions became too tight.
When some long positions were liquidated, it triggered a chain of forced liquidations, which led to the collapse in price.
Source: Coinglass
There is also speculation that major players or whales conducted large-scale selling at the top. Accompanied by massive capital outflows, the lack of timely support accelerated panic in the market.
Some even questioned whether market makers were involved behind the scenes, pointing out that this kind of quick pump followed by a sharp crash is becoming increasingly common on large exchanges. It could be the result of market manipulation or algorithmic trading errors.
However, the $WCT team and exchanges like Binance have remained silent and have not issued any official statements. This silence has sparked strong dissatisfaction among the community.
Many believe the lack of explanation is disappointing, and that this communication failure has further undermined trust.
At the same time, overall market sentiment was generally low at the end of May. As $WCT was considered a strong and resilient leading token, its collapse may signal weakness in the secondary market and could affect the wider crypto ecosystem.
FOLLOW-UP IMPACT: TRUST CRISIS AND MARKET VOLATILITY
The aftermath of the flash crash should not be underestimated. In the short term, the price of $WCT recovered slightly from the low of $0.5083 to $0.5360, showing some buying support.
However, the silence of the team and exchanges has damaged the community’s trust in the project’s transparency and stability.
At the market level, the crash of $WCT triggered a chain reaction. Tokens such as AIOT, TST, and WIF also experienced volatility. The entire market became unstable.
Other assets may come under pressure due to the crash of this leading token, and overall sentiment continued to deteriorate.
On May 29, many influencers had predicted that $WCT could reach $2.827 by the end of the year. Now, this optimistic outlook has been overshadowed by the recent high volatility and this flash crash.
The community has reminded others that $WCT’s price action does not follow traditional investment logic, and investors need to reassess its risks and be cautious of similar sharp volatility repeating in the future.
CONCLUSION: RISKS AND LESSONS FROM THE CRYPTO MARKET
This $WCT flash crash at the end of May 2025 revealed the fragility and high-risk nature of the crypto market.
From a high of $1.39, down to $0.5083, and back to $0.5360 by June 2, the rollercoaster price movement gave investors a shocking experience and much to reflect on.
Whether it was a result of a long-squeeze market mechanism, major sell-offs by big players, or a lack of communication from the project team, this event is a strong reminder: crypto investing requires extreme caution.
This flash crash has clearly sounded the alarm for all market participants — proper risk management and careful decision-making are more important than ever.
〈WalletConnect’s $WCT Token Drops Over 60% in Sudden Crash〉這篇文章最早發佈於《CoinRank》。
