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>>Binance Alpha Token experiences a dramatic price collapse, losing nearly all its value in a rapid decline.

Binance Alpha Token experiences a dramatic price collapse, losing nearly all its value in a rapid decline.

crypthub

3 days ago

Sudden Token Price Collapse

The AB Token experienced a near 99% plunge in value on Binance Alpha, rapidly decreasing from approximately $0.0083 to $0.0000051 within two minutes. Trading volume spiked to over $5 million during this volatile period, highlighting the speed and scale of the crash. The token later rebounded to $0.00151, but still ended the day down more than 80%.

Market Vulnerabilities and Liquidity

The dramatic price movement exposed the market's fragility, particularly regarding thin liquidity pools. A significant disparity existed between trading volume and the size of the token’s liquidity pool, reported at $2.17 million. This imbalance can make the market susceptible to significant price fluctuations when large orders are executed.

Concentrated Ownership and Potential Triggers

Concentrated ownership, with the top 10 wallets controlling over 97% of the circulating supply, appears to have amplified the price decline. Reports indicate large sales of 192 million and 500 million AB tokens coincided with the downward pressure. Possible triggers included a major wallet dump, liquidity withdrawal, or algorithmic trading.

Aftermath and Trader Response

The price later partially recovered, but the event severely damaged trader confidence. Many retail traders reported losses as sentiment turned negative following the flash crash. Neither Binance nor the AB project team have issued an official explanation for the sudden collapse.