Key Takeaways:
- Binance’s leverage changes triggered cascading liquidations, resulting in ACT’s sharp worth drop.
- The ACT crew emphasised the crash was market-driven, not resulting from venture flaws.
- This incident has raised issues concerning the dangers of sudden alternate coverage adjustments on token stability.
Act I The AI Prophecy (ACT), a token related to the eponymous venture targeted on synthetic intelligence, launched a autopsy concerning the fall of their token on Wednesday..
On Tuesday, the token skilled a sudden and extreme worth drop, plunging 58% from $0.19 to $0.08 in lower than an hour. Based on CoinGecko data, the token’s market capitalization shed $96 million.
ACT Staff Addresses Crash, Says Liquidations Triggered Promote-Off
The sharp decline coincided with Binance’s replace to leverage and margin tiers for a number of tokens, together with ACT.
The adjustment triggered a wave of liquidations, with blockchain analytics platform Lookonchain reporting {that a} whale was liquidated for $3.79 million at $0.1877.
The affect of those liquidations intensified promoting strain throughout the market.
In response, Act I addressed the group, assuring that the venture was investigating the state of affairs and dealing with the related events, earlier than then releasing this newest report.
Based on the crew, Binance’s leverage changes have been introduced with quick discover, forcing merchants and market makers with massive positions to shut or downsize, resulting in cascading sell-offs.
Binance’s preliminary findings indicated that 4 customers, together with three VIP merchants and one non-VIP, collectively bought over $1 million value of ACT on the Binance spot market, accelerating the value decline.
Act I emphasised that the crash was not resulting from any inside failure or elementary flaw within the venture.
“No single celebration seems to have profited disproportionately from this sequence of trades,” the crew acknowledged.
It additionally clarified that the total circulating provide of ACT is dwell on the open market, which means centralized exchanges like Binance can't prohibit person conduct as soon as tokens are held in private accounts.
Regardless of the turbulence, Act I reaffirmed its dedication to its long-term mission of integrating synthetic intelligence into decentralized ecosystems.
“Though we're unable to immediately affect the value of the token, we stay targeted on our core mission: to construct actual AI infrastructure for Web3,” the crew acknowledged.
The venture plans to current its developments at Token2049 later this month.
Act I acknowledged the frustration amongst its holders however remained steadfast in its targets.
“This incident, whereas tough, doesn't change our fundamentals, our partnerships, or our long-term imaginative and prescient,” the assertion learn.
“If something, it has made us double down on decentralization, transparency, and resilience.”
Because the venture works to regroup after this market occasion, the token’s worth continues to face strain within the broader market.
ACT Token Bleeds 70% in a Week, CZ Urges AI Tasks to Construct First
The sell-off in Act I The AI Prophecy (ACT) has intensified, with the token plunging 37.4% previously hour and down 70.8% over the past week, according to CoinGecko.
Supply: CoinGecko
Presently buying and selling at $0.05643, ACT has misplaced almost 94% from its all-time excessive of $0.9198, although it stays 340% above its lowest worth.
Market exercise has additionally declined, with 24-hour buying and selling quantity dropping 21.6% to $477.7 million.
Amid the turmoil, Binance co-founder Changpeng “CZ” Zhao has weighed in on the broader AI and crypto intersection, criticizing AI projects that prioritize token launches over real utility.
In a publish on X, CZ stated that “many AI agent builders focus an excessive amount of on their token fairly than the agent’s precise usefulness.”
Too many AI agent builders focus an excessive amount of on their token and never sufficient on the agent's usefulness. I like to recommend making a extremely good agent first.
Solely launch a token when there may be product-market match.
— CZ
BNB (@cz_binance) April 2, 2025
He urged groups to construct a powerful product first and solely introduce a token after reaching product-market match.
His remarks echo earlier criticisms of AI-focused crypto initiatives.
On March 17, he argued that whereas crypto can function the foreign money for AI, most AI brokers don’t want their very own tokens.
Trying ahead, he recommended charging charges in current cryptocurrencies so AI venture groups might concentrate on real-world adoption as an alternative of token efficiency.
The ACT token crash reveals the fragile interaction between alternate insurance policies, market dynamics, and venture fundamentals within the cryptocurrency ecosystem.
Whereas elements like leverage changes can set off rapid worth actions, long-term venture viability finally relies on delivering actual utility.
Because the mud settles on this explicit occasion, the broader dialog about accountable tokenomics and the connection between centralized exchanges and token initiatives is more likely to intensify throughout the trade.
The publish Binance Leverage Adjustment Triggers ACT Sell-Off; Project Dismisses Issues appeared first on Cryptonews.
