Multiple tokens crratized up to 50% within 30 minutes in Crypto Exchange Binance on Tuesday, and market observers wondered if a poorly configured negotiation bot could have caused the decreases.
Law I, Prophecy (ACT) collapsed 50%, Dexe (Dexe) fell 30% and DFORCE (DF) fell almost 20% in minutes after 1100 UTC on Tuesday, Binance data shows, without immediate catalyst or explanation behind the sudden fall.
Around 18:30, multiple altcoins in Binance experienced strong decreases. Act/USDT fell more than 49% in 30 minutes, Dexe/USDT fell more than 23% and DF/USDT decreased more than 16% in the same period. Sudden falls were activated by large sales orders executed in a short period of time, …
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Meanwhile, Hippo, Banana31, TST and Lumia registered similar decreases shortly after 1100 UTC, although not as large as Act, with sauces in some tokens such as Kava that fast fingertips buy quickly.
Tokens are not related or in the same sector. The data showed an increase in the sale of approximately volumes at the same time, without any other binance figure seeing similar peaks in the sale of volumes.
The volatility stage was probably established by Binance’s announcement at 10:30 UTC, which introduced changes in leverage requirements and margin levels for perpetual contracts for several tokens, including Act/USDT.
The announcement said the new rules will be applicable to existing positions. That probably stimulated the position adjustments for commercial bots, which leads to the volatility of prices in perpetuals, which quickly spilled to detect prices.
The waterfall spread to other exchanges, with these low tokens equivalent amounts in other centralized exchanges, as well as in decentralized exchanges.
The early reactions in X ranged from surprise to speculation of a market manufacturing bot that possibly caused the decrease due to a wrong configuration on how they trade, although Coindesk could not independently confirm the accusations until the writing time.
“It seems that someone has been pirated or forbidden or IDK,” said Andrei Grachev, founder of DWF Labs in X. “Otherwise, I cannot explain why too many unrelated assets threw.”
“Although the update was in PERPS, the impact extended on spot. The merchants who use cross -margin configurations or Arro strategies in execution were probably forced to relax on both sides. The panic of the cascade of the authors also extended, algos and discretion observation in an X publication.
Update (April 1, 12:00 UTC): Add additional details and background.
Update (April 1, 12:18 UTC): Add details about the binance change leverage requirements.
