Summary
- Binance stated that the ACT price plunge was due to large-scale sell-offs by some users and the subsequent futures liquidation.
- Regarding this plunge incident, Binance is conducting further investigation and reported that they are taking measures to prevent market risk by adjusting leverage.
- They added that there were no anomalies related to ACT or cases of users' positions being arbitrarily liquidated.
Regarding the approximately 20-50% plunge of major altcoins such as ACT, DF, TUT, and TST on Binance's global cryptocurrency exchange spot trading pairs, Binance explained that the cause was large-scale spot selling by some users and the subsequent liquidation of futures.
On the 1st (local time), Binance explained on X (formerly Twitter), "Three VIP users conducted spot sell trades amounting to 514,000 USDT in a short period, and another user deposited a large amount of ACT from an external platform and sold spot worth 540,000 USDT in a short time."
They continued, "The selling pressure caused the price to drop, and as some users' futures positions were liquidated, other tokens also experienced a simultaneous decline," adding that "further investigation is underway regarding the matter."
Additionally, "Binance is adjusting leverage based on the liquidity, market sentiment, and trading volume of all trading assets," and "recently adjusted the leverage of ACT/USDT perpetual futures as a preventive measure to preemptively mitigate market risk."
Furthermore, "No anomalies were found during the period, and there were no cases of users' positions being arbitrarily liquidated," they added.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
