A notable liquidation event has recently shaken the crypto market as the prominent crypto exchange Binance has modified margin and leverage tiers for several tokens like $ACT. As per Lookonchain, the update in Binance’s margin as well as leverage tiers has led to a whale liquidation, resulting in a sudden slump of 50% in the price of $ACT. The on-chain analytics platform revealed this development in a recent X post.
Whale Liquidates $ACT, Leading to a 50% Dip in Token’s Price
The latest data discloses that the $ACT token has gone through a sheer 50% dip after the whale liquidation. This has ignited significant concerns across the crypto community. The updates made by Binance to the leverage and leverage policies have influenced many traders who were utilizing the high-risk strategies. Hence, this has forced many of them to reevaluate their positions. The market onlookers point out that big-scale off loadings, likely associated to centrally controlled holdings, paved the way for the sharp decline.
In addition to $ACT, several other altcoins such as $DF and $DEXE have also seen considerable plunges on Binance. In this respect, the $DF/$USDT and $DEXE/$USDT pairs saw 16% and 23% declines. One of the key factors behind these drops was the huge sell orders that were performed in rapid succession. This whole development led to a spike in the overall spot trading volume.
Huge Price Decline Suggests $ACT’s Vulnerability to Market Manipulation
According to Lookonchain, among all the sell-offs on Binance, the most severe was that of $ACT’s. In this respect, a single entity reportedly offloaded up to $73M out of the cumulative $100M in their $ACT holdings. This concentration level has triggered apprehensions among investors concerning the vulnerability of the token to market manipulation. Such large-scale liquidations often create a domino effect on the other assets as well, pushing several traders to quit positions.
