On Tuesday, a number of tokens experienced dramatic drops of up to 50% within just 30 minutes on the cryptocurrency exchange Binance, leaving market observers pondering whether a misconfigured trading bot might have triggered these sell-offs.
Specifically, Act I, the Prophecy (ACT) plummeted by 50%, DeXe (DEXE) tumbled 30%, and dForce (DF) fell by almost 20% shortly after 1100 UTC, according to Binance data, with no immediate reason or catalyst pointing to the abrupt decline.
These tokens belong to different categories and are not interconnected. Data indicated a notable increase in selling activity around the same time, while other tokens on Binance did not experience similar surges in selling pressure.
The downturn also impacted other exchanges, with these tokens reflecting comparable losses on both centralized and decentralized platforms.
Initial reactions on X ranged from astonishment to theories suggesting that a market-making bot might be responsible for the declines due to an improper trading setup, though these claims could not be independently verified at the time of this writing.