Many Altcoins and Memecoins saw a sharp sale on April 1st April Fools Day. This is because some tokens, including AI The AI prophecy, fell nearly 60% in minutes.
According to data from CoinMarketCap, AI Prophecy (ACT), a token associated with the project of the same name that focuses on artificial intelligence, plummeted from $0.19 to $0.08 on April 1st.
The sharp drops of ACT came with meme coins like Sudeng (Hippo), CZ’s Dog (Broccoli), Kishu Inu (Kishu), Dexe (Dexe) and DForce (DF), along with the remarkable red action in the Altcoin market.
The cryptocurrency market is at a glance. Source: Coin360
The broader crypto market has not responded negatively to panic in the Altcoin market. This is because at the time of writing, major cryptocurrencies such as Bitcoin (BTC) remain green.
ACT II: “Fully aware of the situation”
The massive decline in ACT tokens is unnoticed on social media, and it is ensuring that ACT II has moved to X and that the project is fully aware of the current situation.
“Our team is actively researching and working together with all relevant parties to address this issue,” I write.
Source: AIT I The AI Prophecy
Some crypto commentators have linked abrupt price transfers to margin updates by Binance.
Binance leverage update triggers a $3.8 million whale liquidation
According to data from the Blockchain Analytics tool Lookonchain, updates in leverage for Binance and margin tier updates for tokens like the April 1 ACT have triggered some major liquidation between whales.
“Binance updated the leverage and margin layer for tokens like ACT, and the whales were liquidated at $3.79 million at $0.1877,” Lookonchain said on the X-Post.
Source: LookonChain
According to a blog post by Binance, its derivatives platform, Binance Futures, has been updated to the leverage and margin layer of pairs, such as the ACT Vis Tether USDT (USDT) at 10:30 UTC.
Related: List Altcoin Trap Exchanges in “Forever Hamster Wheel” – River CEO
The update could affect existing positions prior to the update, potentially leading to the expiration of some position, Binance noted.
Speculations regarding WinterMute sales
Altcoin Bleeding came amidst the community speculation surrounding sales by WinterMute, a global algorithm trading company reportedly liquidated multiple Altcoin positions on April 1.
While some market observers suggested that the sale was due to hacks, many expressed confusion about possible reasons for the root cause of the sale.
“MMS doesn’t just spit nuclear weapons to entertain their books. It’s hacks, bankruptcy, or someone calling the margins violently,” commented Defi Kadic.
Others speculated about WinterMute, which interacts with USD1 Stablecoin by World Liberty Financial linked to Donald Trump.
sauce: Daniel (Degenerk)
“Because it’s a massive deal for them, they’re either denying all assets that could be non-compliant or disagreeing with the direction of the new brand taking an institutional player,” X-user argued.
WinterMute co-founder and CEO Evgeny Gaevoy denied the company’s involvement in the Altcoin massacre on April 1 in a social media exchange with X user IlikeBlocks.
“We’re also interested in the deaths of that post, not us (for it’s worth it),” Geboy writes.
Source: Evgeny Gaevoy (wishfulcynic), co-founder and CEO of IlikeBlocks and WinterMute
IlikeBlocks later posted to express his regret in his initial claim about WinterMute.
“They make the market better for us all, and compared to their competition, they’re not really that suspicious,” they added.
Cointelegraph approached WinterMute for comments on market behavior, but did not receive a response by the time of publication.
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