The April 1 joke in the crypto markets exploded to investors this year. After the Binance -based information scandal, the harsh decline in the ACT I The AI PROPHECY (ACT) Token, especially artificial intelligence themed, triggered panic in the market. ACT, over 63 percent of the last 24 hours, losing more than 0.0699 dollars to the level fell. The incident increased the reaction of investors, particularly on social media, and fueled Binance’s silence discussions.
Leverage move triggered liquations
After the scandal, not only ACT, but some other tokens listed in Binance lost value. Lver, Broccolı714, Mask and DF token also experienced decreases exceeding 30 percent. In the background of the business, Binance’s quietly lies the leverage rates on these assets. This sudden change left high -position market constructive companies in a difficult situation.
For example, Wintermute, an important market -maker, had to automatically liquid their assets because it carried a position above the new boundaries. This caused chain sales and sudden decreases in the entire Altcoin market. The incident also showed many investors how arbitrage opportunities in algorithmic trading pools may have systemic effects.
#Boycottbinance is on the agenda: Transparency debate is growing
After the scandal, social media users began to reveal their reactions with the #boycottbinance tag. The fact that Binance has not made a statement about the incident seems to have shaken confidence on the platform. Yi He, one of the founding partners of Binance, stated that they had collected the details of the incident and that they would soon publish a report, but it was not enough to relieve the reactions.
Evgeny Gaevoy, Wintermute CEO, argued that the decreases were not a conscious manipulation, but an automatic reactions to an arbitrage cavity. However, some people from the community argue that Binance is increasingly becoming a “volume -oriented” structure and that instead of creating benefits, it is only directed to earn from buy -sell transactions. This scandal, which was especially influential on the Memecoins, caused Binance’s approach to the newly listed tokens. The eyes are now in the detailed report that Binance will be published. However, this crisis once again revealed that crypto exchanges should be more transparent in decision -making processes.
