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Yahoo
05-04-2025
- Business
- Yahoo
Is A Binance Update To Blame For A Crash In Several Altcoins That Triggered A $3.8M Loss For At Least 1 Trader?
Several altcoins crashed in minutes on Binance on Tuesday despite quiet market conditions. Some have pointed to an exchange update as the cause of the turbulence, but questions remain. Localized flash crashes are nothing new in crypto. While cryptocurrency market participants have been bracing for volatility all week, users of the largest cryptocurrency exchange by volume, Binance, were still caught off guard when several altcoins crashed on the exchange, costing at least one trader seven figures. Is an exchange update to blame? Don't Miss: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. If there was a new fund backed by Jeff Bezos offering a ? On Tuesday, several altcoins saw significant price declines in minutes on Binance despite relatively quiet market conditions. The most notable of them, a popular Solana memecoin, Act 1 The Prophecy, or ACT, tanked as much as 52% in 30 minutes from $0.1897 to $0.0904 and, albeit at a slower pace, is still falling at the time of writing on Wednesday, trading at $0.0588. Besides ACT, DEXE, the token for DeXe, a decentralized autonomous organization, also fell about 35% in 45 minutes, though, unlike ACT, it has recouped some of its initial losses at the time of writing. Other tokens that recorded significant losses include BANANAS31, HIPPO, KAVA, LUMIA, QUICK, and TST. Amid the chaos, at least one trader has suffered significant losses. Prominent crypto smart money tracker Lookonchain highlighted CoinGlass data showing that a whale was liquidated for $3.79 million as the price of ACT hit $ It's no wonder Jeff Bezos holds over $250 million in art — Many, including Lookonchain, have attributed the recent incident to an update to Binance's leverage trading platform, sparking outrage from users. Specifically, on Tuesday, the exchange tweaked the leverage and margin tiers for several pairs, including 1000SATSUSDT, ACTUSDT, PNUTUSDT, NEOUSDT, NEOUSDC, TURBOUSDT, and MEWUSDT. But the explanation that this update was the problem raises the question of why only ACT was affected in this list and why other tokens like DEXE were impacted. Binance, for its part, has released the findings of a preliminary investigation, stating, 'there were no market anomalies during the adjustments.' The exchange did, however, highlight large ACT spot sell orders on the platform around the time that may have sparked volatility under low liquidity conditions. According to the exchange, three VIP accounts sold ACT tokens worth approximately 514,000 USDT, while one non-VIP account sold 540,000 USDT worth of the token. Still, the exchange dispelled any notion of a coordinated effort to drive down the price of the token by asserting that no single account made significant profits from the incident. Localized flash crashes like this are nothing new in October, BGB, the native token of the cryptocurrency exchange Bitget, experienced an isolated flash crash that caused it to lose 50% of its value in 15 minutes. This forced the exchange to promise full compensation for any March 2024, Bitcoin crashed 87% on BitMEX from over $67,000 to $8,900, but the exchange maintained that the turbulence did not impact its derivatives trading the height of the 2021 bull market, the U.S. arm of the Binance exchange, experienced a similar incident, with Bitcoin crashing 88% to $8,200. These incidents highlight the need for robust liquidity while raising questions about the stability and reliability of these cryptocurrency exchange platforms. Read Next: Have $200K saved? Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Is A Binance Update To Blame For A Crash In Several Altcoins That Triggered A $3.8M Loss For At Least 1 Trader? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
01-04-2025
- Business
- Yahoo
Some Crypto Tokens Plunge 50% Within Minutes on Binance Amid Suspected Trading Bot Glitch
Multiple tokens cratered as much as 50% within 30-minutes on crypto exchange Binance on Tuesday, with market watchers wondering if a misconfigured trading bot could have caused the declines. Act I, the Prophecy (ACT) slumped 50%, DeXe (DEXE) dropped 30% and dForce (DF) fell nearly 20% within minutes after 1031 UTC on Tuesday, data from Binance shows, with no immediate catalyst or explanation behind the sudden fall. The drop led to $6.28 million worth of longs being liquidated on ACT-tracked futures across exchanges, Coinglass data shows, with a single trader hit with a $3.2 million liquidation. Meanwhile, HIPPO, BANANA31, TST and LUMIA posted similar declines shortly after 1100 UTC, though not as large as ACT, with dips in some tokens like KAVA getting quickly purchased by fast-fingered traders. The tokens are not related or in the same sector. Data showed a surge in selling volumes roughly around the same time, with no other tokens on Binance seeing similar spikes in selling volumes. The stage for volatility was likely set by Binance's announcement at 10:30 UTC, which introduced changes in leverage requirements and margin tiers for perpetual contracts for several tokens, including ACT/USDT. The announcement said the new rules will be applicable to existing positions. That likely spurred position adjustments by trading bots, leading to price volatility in perpetuals, which quickly spilled over to spot prices. The cascade spread over to other exchanges, with these tokens down equivalent amounts on other centralized exchanges as well as on decentralized exchanges. Early reactions on X ranged from surprise to speculations of a market-making bot possibly causing the declines due to a misconfiguration on how they trade, though CoinDesk could not independently confirm the allegations as of writing time. "Seems someone has been hacked or banned or idk," Andrei Grachev, founder at DWF Labs said on X. "Otherwise I cannot explain why too many unrelated assets dumped." "Even though the update was on perps, the impact spilled into spot. Traders using cross-margin setups or running arb strategies were likely forced to unwind both sides. Panic from the perp cascade also spread, algos and discretionary players alike started exiting spot just to stay ahead of the move," pseudonymous observer Game said in an X post. UPDATE (April 1, 12:00 UTC): Adds additional details and background. UPDATE (April 1, 12:18 UTC): Adds details on Binance changing leverage requirements. Sign in to access your portfolio
