Binance News: ACT Token Faces Leverage Adjustment, Price Drop, and Liquidations

In a recent development in the cryptocurrency market, Binance, one of the largest crypto exchanges globally, made significant adjustments to the leverage limits for the ACT token. This move triggered a series of events that led to a steep price drop and numerous liquidations, causing substantial losses for traders.

Binance Adjusts Leverage Limits for ACT Token, Triggering Price Drop and Liquidations

Binance adjusted the leverage limits for the ACT token, leading to a 50% price drop and forced liquidations. Three VIP users and one retail trader sold over $1 million in ACT, intensifying the sell-off. Binance reduced the ACTUSDT futures leverage to mitigate further risk but could not freeze trading due to the token’s full circulation. The collective sell-off created significant losses for ACT traders.

Tokyo Exchange-listed Japanese Gaming Firm Enish Announces Bitcoin Buy

Enish, a Tokyo Exchange-listed gaming company, has announced plans to purchase 100 million yen ($667,260) worth of Bitcoin (BTC) using its balance sheet. The company, which launched in 2009 and has worked on mobile games such as De:Lithe – The King of Oblivion and Angel of the Covenant, aims to strengthen its web3 business operations with this move. The purchase is expected to be completed by April 4, according to a public disclosure document published on April 1.

Binance Leverage Adjustment Triggers ACT Sell-Off; Project Dismisses Issues

Binance’s leverage adjustments triggered cascading liquidations, leading to a sharp price drop of ACT, a token associated with the AI Prophecy project focused on artificial intelligence. The token plunged 58% from $0.19 to $0.08 in less than an hour, shedding $96 million in market capitalization. The ACT team emphasized that the crash was market-driven and not due to project flaws. This incident has raised concerns about the risks of sudden exchange policy changes on token stability.