Based on the most recent developments, the primary official assertion got here from at this time's Binance, particularly concerning the I: AI Prophecy (ACT) token, in regards to the large, sudden drop that first occurred in futures after which within the spot market of cryptocurrency exchanges.
The Inventory Alternate issued the next assertion:
ACT costs have led some customers to settle futures jobs, and different low-market tokens have additionally been declining. We’re at the moment additional investigating the causes of the decline in different tokens. Thus far, we have now not recognized any accounts which have made vital income from the occasion. As the provision of ACT tokens is at the moment totally circulated within the secondary market, Binance can not restrict or intrude with the gross sales habits of customers. Nonetheless, it’s secure to proceed investigating this incident and supply additional updates if there are new developments.
Within the preliminary survey, three VIP customers bought roughly 514,000 USDT price of ACT tokens within the Binance Spot market, transferred giant portions of ACTs to non-VIP consumer accounts, after which bought roughly 540,000 USDT price of ACTs within the Binance Spot Market.
Binance periodically adjusts leverage ranges for all futures pairs based mostly on liquidity, market sentiment and buying and selling quantity. To proactively stop potential fluctuations and dangers, precautions had been taken to cut back the leverage ratio of ActUSDT USD-M everlasting contracts, and no market abnormalities had been skilled throughout changes.
Given the numerous market volatility today, Binance will proceed to regulate the leverage ratio of various pairs relying available on the market scenario to cut back the danger of defending customers. Binance desires to make use of this chance to remind everybody to take applicable threat administration measures when buying and selling digital belongings.
It was argued that the explanation for the decline was that after Vinance modified its restrict on low leverage positions, the market makers weren’t given sufficient time to adapt, ensuing available in the market makers being liquidated.
*This isn’t funding recommendation.
