Altcoins Plunge on Binance… ACT and Others Drop 50% in Minutes

# Binance Sees Sharp Declines in Multiple Altcoins, ACT Plummets Over 50% Binance, one of the world's largest cryptocurrency exchanges, witnessed a sharp decline in several altcoins, with the Solana-based AI meme token ACT suffering a stunning drop of over 50% in mere minutes. The exchange has since confirmed that the substantial sell-offs originated from a handful of user accounts and has launched an investigation into the underlying causes. On November 1, a range of altcoins including ACT, DEXE, and DF fell between 20% and 50%. Other cryptocurrencies such as KAVA, HIPPO, BANANAS31, LUMIA, TST, and QUICK also experienced similar downtrends. The sudden plunge added to market confusion, particularly as the broader cryptocurrency market was trending upward at the same time. # Was Mass Liquidation or Margin Adjustments the Culprit? ACT's sharp decline has raised speculation that the collapse may be linked to Binance’s recent changes to margin contract terms. The exchange had previously announced adjustments to perpetual futures margin requirements for six altcoins, including ACT. However, the lack of significant price drops in other adjusted tokens has left questions about the direct cause. Some analysts have postulated that market maker algorithms or automated trading bots might have liquidated positions in response to the updated margin terms. On-chain data observer “The OnchainData Nerd” reported that high-frequency trading firm Wintermute executed a large sell-off of ACT during the meltdown. # "Four Accounts Sold $10 Million in ACT," Binance Reveals Hours after the sell-off, Binance issued an official statement, explaining that “a total of four accounts concentrated their selling activity in ACT spot markets.” Of these, three accounts were VIP clients, collectively offloading ACT worth approximately $514 million USDT. The fourth account sold an additional $540,000 USDT in ACT. The massive sell orders triggered liquidations of futures positions tied to ACT, which, due to the low liquidity of other altcoins, caused a knock-on effect in their markets as well. Binance is currently investigating the declines in non-ACT tokens to determine any broader implications or links to the incident. # ACT: From Flagship Meme Token to Massive Market Cap Collapse Once a leading symbol of the AI meme-coin frenzy within the Solana ecosystem, ACT played a prominent role in 2024, touting an ecosystem where humans and bots interact seamlessly. At its peak, the token’s market capitalization exceeded $890 million. However, the latest sell-off dealt a significant blow, leading to an overall decline of more than 85% from its all-time high. ACT's current capitalization now hovers around $95 million. The dramatic drop has fueled further controversy, with some investors speculating about potential market manipulation or insider trading. Binance has pledged to continue its investigation into the incident to provide additional transparency and insights.