Crypto Tokens Drop 50% in Minutes on Binance Amid Suspected Trading Bot Glitch

Key Points to Know:

• Several cryptocurrencies on Binance experienced sharp declines, with some tokens dropping up to 50% within 30 minutes.

• Tokens like Act I, the Prophecy (ACT), DeXe (DEXE), and dForce (DF) saw significant losses without an immediate explanation.

• Speculation points to a misconfigured trading bot possibly triggering the sell-off, though this has not been confirmed.

Several tokens on Binance experienced steep declines of up to 50% within a 30-minute window on Tuesday, sparking speculation that a misconfigured trading bot might have been responsible for the sudden drops.

Act I, the Prophecy (ACT) saw a 50% plunge, DeXe (DEXE) dropped 30%, and dForce (DF) fell by nearly 20% shortly after 1100 UTC, according to Binance data. There was no clear cause or immediate explanation for these sharp declines.

The tokens in question are unrelated and belong to different sectors. Data revealed a surge in selling volumes at roughly the same time, but no other tokens on Binance experienced similar spikes in sell-offs.

The drop extended to other exchanges, with these tokens showing equivalent declines on both centralized and decentralized platforms.

Initial reactions on X ranged from surprise to speculation that a market-making bot may have caused the drops due to a potential misconfiguration in its trading strategy. However, these claims could not be independently confirmed at the time.