Binance Response to ACT Price Plunge: 4 Users Short-Sell Over $1 Million Worth of ACT Tokens, Partial User Liquidations Triggered Other Token Dips.

BlockBeats News, April 2nd, Binance responded to the yesterday's sharp decline of some Meme coins including ACT, stating, "After a preliminary investigation, we found that individual small-cap tokens experienced a cascading price drop event, including three VIP users engaging in cross-market selling of tokens worth approximately 514,000 USDT in a short period of time, and one non-VIP user transferring a large amount of ACT from another platform and selling tokens worth 540,000 USDT on the spot market."

During the price drop, some users' futures contracts were liquidated, causing a ripple effect leading to the decline of other tokens. No large profit-taking accounts have been identified so far. As the token is already fully circulating in the secondary market, the platform cannot intervene in any user's selling behavior. We will continue to investigate this incident, and if there are any updates, Binance will further synchronize relevant details."

Binance regularly adjusts the leverage multiples based on the liquidity, market sentiment, and trading volume of all trading pairs. To proactively prevent potential volatility and risks, we have taken proactive measures to reduce the leverage multiples. Recently, Binance Futures has successively issued adjustment notices for the ACTUSDT perpetual contract. During this period, there have been no abnormal market movements, and no positions of any users have been actively liquidated. Market makers are a key part of the industry ecosystem, and Binance also provides a comprehensive market maker program to incentivize more market makers to join Binance and enhance market liquidity.

Due to recent significant market fluctuations, in order to ensure the security of users' assets and reduce trading risks, Binance will promptly adjust leverage according to market conditions to avoid systemic risks in the entire trading market. Binance also reminds all users to implement appropriate risk control measures."