- Multiple altcoins listed on Binance saw double-digit losses.
- Traders speculated that large sell orders triggered the price collapse.
- According to Binance’s April 1 announcement, these changes impacted existing positions.
A recent Binance margin update has sent Solana-based memecoin ACT into a steep correction, triggering mass liquidations and shaking up the altcoin market.
Initially, traders blamed market maker Wintermute for the sudden crash, but Binance’s changes to leverage and margin tiers appear to be the real culprit.
Binance altcoins hit hard as ACT plummets 50%
Multiple altcoins listed on Binance saw double-digit losses, according to posts on X (formerly Twitter).
The worst hit was ACT, which lost over 50% of its value in just 30 minutes. Other altcoins, including DEXE (-23%) and DF (-16%), also suffered steep declines.
Traders speculated that large sell orders triggered the price collapse.
Market maker Wintermute was also suspected of causing the sell-off, but CEO Evgeny Gaevoy denied involvement, stating that Wintermute reacted only after the crash had already begun.
The sharp correction comes despite broader market recovery, with coins like Compound (COMP) surging 70%.
Binance’s margin update: The real cause of the sell-off?
The ACT crash was triggered by a Binance update to margin and leverage tiers for several perpetual contracts, affecting traders’ open positions.
According to Binance’s April 1 announcement, these changes impacted existing positions, giving traders less than three hours to react.
One major ACT whale was liquidated for $3.79 million at $0.1877, setting off a wave of panic selling. Former FTX community manager Benson Sun criticized Binance, saying:
“Before changing the rules, Binance should have evaluated how many positions would be closed. If market makers had large positions, they should have been notified in advance.”
Binance faces more scrutiny
Binance has come under increased criticism in recent days.
The controversy follows the 40% drop of newly listed memecoin MUBARAK and Binance’s exclusion of Pi Network from its Vote to List initiative.
With market volatility on the rise and Binance’s policy changes having major impacts on traders, concerns over transparency and risk management continue to grow.
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