Altcoins lose $96M as ACT token crashes 58% in minutes

The cryptocurrency market witnessed a sharp sell-off on April 1, 2025, as several altcoins and memecoins experienced significant price declines.

Act I The AI Prophecy (CRYPTO:ACT), a token tied to an artificial intelligence project, saw its value plummet by 58%, dropping from $0.19 to $0.08 within an hour.

This sudden crash wiped out $96 million in market capitalisation, according to CoinMarketCap data.

The broader altcoin market also faced turbulence, with tokens like sudeng (CRYPTO:HIPPO), CZ’s Dog (BROCCOLI), Kishu Inu (CRYPTO:KISHU), and dForce (DF) registering notable losses.

However, major cryptocurrencies such as Bitcoin (CRYPTO:BTC) remained stable, showing resilience amid the panic.

The ACT crash has been linked to Binance’s margin tier updates for tokens like ACT.

Blockchain analytics firm Lookonchain reported that these changes triggered liquidations, including a whale position worth $3.79 million at $0.1877.

Binance’s adjustments affected existing positions opened before the update, leading to forced closures and cascading price drops.

Act I responded to the crash on social media, assuring its community that it is investigating the situation and collaborating with relevant parties.

“Our team is actively working on a response plan with trusted partners,” the project stated.

Speculation surrounding the sell-off includes theories about Wintermute, a prominent market-making firm, potentially liquidating altcoin positions.

“Not us [for what it’s worth], but also curious about that post mortem,” stated Wintermute CEO Evgeny Gaevoy, denying involvement.

Community discussions also pointed to Binance’s leverage adjustments as the primary catalyst for the crash.

Analysts noted that these changes imposed stricter limits on position sizes, which led to forced liquidations and amplified market volatility.