On November 2, Binance co-founder Changpeng Zhao (CZ) sparked excitement in the crypto space by revealing a $2.5 million investment in
ASTER
tokens. This announcement propelled the DEX altcoin up by 40%, reaching a high of $1.25. CZ’s move, reflecting his ongoing support for decentralized platforms, briefly made ASTER one of the top gainers of the day. However, the rally was short-lived as the token quickly reversed course, allowing short-sellers to earn more than $7 million in profits within a few days, as reported by
Yahoo Finance report
.
Following this surge, ASTER experienced a rapid decline typical of a "pump and dump," falling 15% from its daily peak to
test
support at $1.05, according to Yahoo Finance. Two large holders, identified by on-chain analyst Lookonchain, took advantage of the downturn, securing $6.15 million and $1.56 million in profits from their short trades, as the same Yahoo report noted. CZ, a well-known proponent of decentralized finance, commented on the situation via social media, saying, "It's a decentralized world. Anyone can short, anyone can long, anyone can hold," and highlighted ASTER’s potential as a rival to Hyperliquid.
ASTER’s price swings illustrate how individual actions can significantly impact crypto markets. CZ’s purchase led to a 900% jump in ASTER’s daily trading volume, reaching $2.5 billion, as reported by Yahoo Finance. At the same time, futures open interest climbed 45% to $647 million, signaling increased speculative trading. Analyst Altcoin Ardi pointed out that ASTER is currently trading near a key 61.8% Fibonacci retracement level, and a move above $1.29 would be needed to confirm a lasting upward trend.
The ASTER story is unfolding amid broader volatility in the crypto sector. On HyperLiquid, a newly created wallet deposited $7 million in
USDC
to initiate 20x leveraged short positions in
Bitcoin
and
XRP
, resulting in over $110 million in notional exposure, according to a
Panewslab report
. This trend points to a bearish outlook among institutional traders, with leveraged shorts now making up a substantial share of the platform’s $1.656 billion in 24-hour liquidations, as Panewslab also reported.
Regulatory challenges are also in focus.
Coinbase
, the leading crypto exchange in the U.S., is under investigation after being fined 21.5 million euros by Ireland’s central bank for shortcomings in anti-money laundering controls, according to
a Reuters report
. At the same time, the company is urging the U.S. Treasury to adopt a "practical, low-burden" approach to stablecoin taxation under the new GENIUS Act, as reported by
CryptoNews report
. CEO Brian Armstrong stressed the importance of clear regulations during
Q3 earnings
, where Coinbase posted $1.87 billion in revenue, beating expectations.
Meanwhile, Life Time Group, a company in the fitness and wellness sector, reported strong earnings guidance, with analysts forecasting an 89.5% increase in EPS year-over-year, according to
a Seeking Alpha preview
. Although not related to crypto, the stock’s performance highlights the wide-ranging interests of institutional investors in a turbulent economic environment.
The ASTER incident demonstrates the volatile nature of crypto markets, where both retail traders and large holders can quickly influence asset prices. As seen with CZ’s endorsement and the profits made by short-sellers, the dynamic between individual moves and algorithmic trading continues to shape the industry. For now, ASTER’s future depends on whether buyers can push the price back above $1.29 or if sellers will maintain control at $1.05.
