The crypto landscape has truly managed to change with the aid of memecoins. Memecoins have added an extra layer of complexity that was not present earlier. The current cascading effect of AI Prophecy (ACT) is a tell-tale sign of that cascading.
In the past 24 hours, the coin has fallen by 24%, with an overall average of 1% every hour. The crash started on April 1st. Soon enough, market experts started noticing the bleeding and claimed that this was part of a broader market downturn.
Apart from memecoins, the downtrend has also managed to grip other altcoins like Bonance. Binance has managed to drop between 20% and 50% in a matter of a few hours. However, the biggest drop was noticed by ACT as it fell by almost 60% from $0.19 to $0.08.
60% Drop In An Hour
ACT’s drop was recorded in one hour and has resulted in a cumulative loss of $96 million. This has put the ACT development team in overdrive. The team launched a specialized investigation to identify the root cause.
After the initial round of investigation, the team released the following statement: “Binance recently adjusted leverage and margin tiers for multiple tokens, including ACT with a few hours short notice on 3/31 and 4/1.”
The team further added, “This forced many traders and market makers with very large positions to be forced to close/downsize their positions, leading to a wave of sell-offs. Since both high-leverage and low-leverage traders were affected, selling pressure intensified rapidly.”
Investigation also showed that certain VIPs can be attributed to the selling pressure. The VIPs flushed the system with large holdings, which increased the overall selling pressure, leading to a major slump.
