A number of altcoins and memecoins saw a sharp sell-off on April Fools’ Day, April 1, with some tokens, including Act I The AI Prophecy, dropping nearly 60% in minutes. Such massive drops in value create a bearish market, scaring off new potential investors and adding to the age old “bubble” argument related to cryptocurrency, especially from the naysayers.
Act 1’s embarrassing fall from grace
Act I The AI Prophecy (ACT), a token associated with the eponymous project focused on artificial intelligence, plunged 58% from $0.19 to $0.08 in less than an hour on April 1, with its market cap shedding $96 million, according to data from CoinMarketCap.
The sharp drop of ACT came along with notable red action in the altcoin market, with memecoins like sudeng (HIPPO), CZ’S Dog (BROCCOLI), Kishu Inu (KISHU), DeXe, dForce (DF) and more seeing significant price declines.
Developers of Act took to social media on X and stated that they are “fully aware of the situation” and reassure users that it will rise again. “Our team is actively investigating and working collaboratively with all relevant parties to address this matter,” Act I wrote, adding that it also started developing a “response plan” with its trusted partners.
Binance Updates Leverages and margins on tokens like ACT
According to multiple insightful analytical tools such as Lookonchain, a blockchain analytical tool. Binance’s recent updates on leverages and margins on ACT caused a massive upset and serious liquidation in crypto giants betting on ACT.
“Binance updated leverage and margin tiers on tokens like ACT and a whale got liquidated for $3.79M at $0.1877,” Lookonchain said in an X post.
Many users on X took advantage of the market crash and posted their two cents about how the market has always been a bubble, however many analysts state that such a downfall was necessary and binance’s actions have initialized a start in ensuring a much more stable market by cutting out all the memecoins and altcoins.
