The update of the Binance Exchange on leverage and margin levels caused sudden price decreases for many subcoin, including the Solana -based Act project.
Hard drop in the Altcoin market after the Binance update
Binance’s update on leverage and margin levels has led to the loss of value of many subcoin with double -digit percentages. In particular, Solana Breast Coini Act was token, who lost more than 50 %in just 30 minutes, and the most harsh decline.
In the same period, other subcoins such as Dexe and DF declined by 23 %and 16 %respectively. While these sudden price decreases were surprised by investors, there was a general consensus that big sales orders caused these decreases.
“Sudden decreases were triggered by large sales orders in a short time, and this led to a significant increase in the volume of spot transaction.” he said.
Charges to Wintermute and Binance Update
At first, the market -maker Wintermute was shown as responsible for these sharp decreases. However, Wintermute CEO Evgeny Gaevoy rejected these allegations, stating that his company reacted only after the fall.
This depreciation took place during the general market recovery, where some crypto currencies such as Compound (Comp) gained 70 %.
What did the Solana -based Act trigger a 50 %drop?
Binance’s update for leverage and margin levels in certain tokens such as ACT is shown as the main reason for this big decline. According to the announcement made on April 1, the stock market has updated the margins in various constant futures contracts and the current positions will be affected by this situation.
Following this move, an Act whale experienced $ 3.79 million liquidation at $ 0.1877 and triggered a large -scale sales wave. Former FTX Community Manager Benson Sun criticized Binance, stating that investors were only recognized for 3 hours to react to this change.
“Binance should have evaluated how many positions would be closed before making the rule change.” Sun said, “If there were market makers with large positions, they should have been informed in advance.” He said.
Binance Description and Results
Binance, said in a statement, sharp decreases after three VIP users to sell a total of 514,000 USDT token announced. A non -VIP user transferred a significant amount of ACT token from other stock exchanges and made sales in the spot market.
With ACT’s depreciation, users have closed their futures, which led to corrections in other tokens. According to Binance’s first assessments, no account has made a great profit in this process.
The stock exchange stressed that transactions took place in the secondary market and that users cannot intervene in trade behaviors.
Binance CEO Changpeng Zhao, Mubarak Token after the list of 40 %decrease in the list of a token, the effect of listing on the price should not exaggerate the effect. In addition, Binance has become the target of criticism in recent days by removing Pi Network from the “Vote to List” initiative.
