Binance April Fools’ Scandal Sparks Market Chaos: ACT Drops 63% Amid Liquidations

The post Binance April Fools’ Scandal Sparks Market Chaos: ACT Drops 63% Amid Liquidations appeared first on Coinpedia Fintech News

The impact of the April Fool’s Binance

Binance
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scandal has continued to unfold amid market confusion and heavy liquidations. In the past 24 hours,  Act I The AI Prophecy (ACT) price has dropped over 63 percent to trade at about $0.06987 on Wednesday, during the early Western financial markets. 

Several other Binance-listed tokens – led by DEXE, KAVA, HIPPO, TST, LUMIA, and QUICK, among others – recorded more than 50 percent decline in the past 24 hours. After an on-chain investment, it was revealed that the Binance exchange lowered the leverage position for the involved tokens.

As a result, market makers like Wintermute, which held positions exceeding the new limits were forced to liquidate their holdings automatically.

Binance to Take Responsibility 

Following the Binance scandal on April Fools’ Day, the desire for the affected crypto investors to boycott the exchange is palpable. In the past 24 hours, the #BoycottBinance topic has been trending on the X platform, especially after the crypto exchange had not provided a detailed report on the incident as of this writing.

According to Evgeny Gaevoy, CEO at Wintermute, yesterday’s altcoin selloff on the Binance exchange was a reaction to an arbitrage opportunity in an Automated Market Maker pool rather than a deliberate strategy. Meanwhile, Yi He, cofounder at Binance, noted that the crypto exchange is collecting details and preparing a report on yesterday’s incident. 

Yi hinted at the involvement of another player, which has significantly complicated the incident. Nonetheless, the scandal has made a major dent in memecoins, especially those listed by Binance in the recent past. 

Moreover, some community members have accused Binance exchange of being focused to make profit on rising volume instead of focusing on building utility projects.