Binance has issued a statement regarding the sharp decline in the price of several meme coins, including ACT, which experienced significant volatility on April 1. The exchange explained that three VIP users sold a substantial amount of ACT tokens, totaling 514,000 USDT, on the Binance spot market within a short timeframe.
Simultaneously, a non-VIP user transferred a large quantity of ACT tokens into their account and sold approximately 540,000 USDT worth of ACT. This surge in sell-offs led to the price drop of ACT, triggering the liquidation of certain futures positions, and also causing other low-market-cap tokens to lose value.
Binance clarified that no single account appeared to make significant profits from the sell-off. Since the ACT token is fully circulating in the secondary market, the platform cannot prevent users from selling their tokens. However, Binance assured that it is continuing its investigation into the matter and will provide updates if any new developments arise.
The exchange also mentioned that it regularly adjusts leverage levels based on market conditions, such as liquidity and trading volume. In response to the incident, Binance lowered the leverage on the ACT/USDT perpetual contract. During this adjustment, no market anomalies were observed, and no users’ positions were forcibly closed.
To support liquidity, Binance highlighted its incentives for market makers and urged users to manage their risks appropriately when trading digital assets, especially as market conditions can change rapidly.
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