A few days ago, some altcoins listed on Binance experienced sudden and sharp declines.
While these declines caused investors to suffer major losses, these declines continue to be one of the main agenda topics in the market.
While ACT, a memecoin based on Solana (SOL), one of the altcoins that experienced a sharp and sudden decline, attracted attention with its drop exceeding 70%, an official statement came from the ACT team.
While explaining the reason for the decline in its statement, the ACT team stated that the foundations of the ACT project were solid and that there were no problems.
The ACT team pointed to Binance as the reason for the drop. The team stated that Binance’s changes to leverage and margin settings on March 31 and April 1 caused the sudden price drop.
“What happened: Binance adjusted leverage and margin tiers for multiple tokens, including ACT, with a few hours notice on March 31 and April 1. This situation caused many investors and market makers with very large positions to be forced to close/reduce their positions, which led to a wave of selling. Selling pressure intensified rapidly, with both high-leveraged and low-leveraged investors affected.”
The ACT team also stated that four users, three of whom were VIPs, sold over $1 million worth of ACT on the spot market, as mentioned in Binance’s statement.
According to the team, these sales triggered sharp price declines that resulted in forced liquidations of leveraged positions in the ACT/USDT pair.
Although the sharp and sudden decline in the market was a great disappointment for investors, the ACT team said that there was no problem or fundamental issue with the project.
The team stated that ACT continues its work and said, “We continue to focus on accelerating our long-term goal of promoting growth and development. We will be presenting the projects we are working on at Token2049 at the end of this month, we look forward to presenting there and meeting you.”
The statement made by the team was not enough to stop the ACT price decline. ACT has fallen by over 70% in the last three days.
*This is not investment advice.