The fallout from Binance’s April Fool’s scandal is still unfolding, sending shockwaves through the crypto market. Confusion is high, losses are mounting, and investors are scrambling for answers. In just 24 hours, Act I The AI Prophecy (ACT) has crashed over 63%, now trading at around $0.06987 as of early Wednesday in Western financial markets.
But ACT isn’t the only casualty. Several other Binance-listed tokens have also taken a massive hit, and frustrated traders are demanding explanations. So, what exactly happened? And why is #BoycottBinance suddenly trending?
Here’s a breakdown of the chaos that’s rattling the crypto world.
ACT isn’t the only token hit hard. Several Binance-listed cryptocurrencies – including DEXE, KAVA, HIPPO, TST, LUMIA, and QUICK – have dropped more than 50% in the past day. On-chain data revealed that Binance quietly reduced leverage limits on these tokens.
As a result, market makers like Wintermute, which held positions beyond the new limits, were forced to liquidate their holdings automatically.
Investor frustration is growing, with many calling for a boycott of Binance. The hashtag #BoycottBinance has been trending on X over the past 24 hours, as the exchange has yet to provide a full explanation of what happened.
Wintermute CEO Evgeny Gaevoy clarified that the massive altcoin selloff on Binance was triggered by an arbitrage opportunity in an Automated Market Maker (AMM) pool, not an intentional strategy.
Meanwhile, Binance cofounder Yi He stated that the exchange is investigating the incident and preparing a detailed report. Yi also hinted that another player may have been involved, making the situation even more complex.
Beyond the price drops, some community members have criticized Binance for focusing on profiting from trading volume instead of supporting blockchain projects with real-world utility.
As the crypto world waits for Binance’s official response, the scandal has already damaged confidence in the exchange, adding more uncertainty to an already volatile market.
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