ASTER Crashes 16% After Explosive Rumor Involving CZ – Here’s What Happened

• How Did a Fake Rumor Tank ASTER’s Price?
• Why Does One Tweet Cause Such Havoc?
• What Do Technicals Say Now?
• CZ’s Political Woes Add Fuel to the Fire
• Lessons From the ASTER Avalanche
• FAQs: ASTER’s 16% Crash Explained

A false rumor claiming Changpeng Zhao (CZ) dumped 35 million ASTER tokens triggered a market panic, causing the token to plummet 16.8% in hours. Blockchain analysis later confirmed it was merely an internal Binance wallet transfer. The incident highlights crypto’s vulnerability to misinformation, with $7.11M in liquidations and a 16% surge in trading volume. Technical indicators now suggest uncertainty, while CZ faces political heat from US Senator Elizabeth Warren.

How Did a Fake Rumor Tank ASTER’s Price?

On October 30, 2025, the crypto market witnessed chaos as ASTER, the native token of decentralized exchange Aster, nosedived from $1.03 to $0.8566 (-16.8%) within hours. The culprit? A viral X post alleging CZ had offloaded 35M tokens. Panic selling ensued, but blockchain sleuths at Lookonchain quickly debunked the claim—it was just Binance shuffling funds between hot wallets. CZ himself slammed it as “fake news,” but the damage was done. Liquidations hit $7.11M for ASTER alone, part of a broader $884M market wipeout that day.

Why Does One Tweet Cause Such Havoc?

Crypto markets MOVE at meme speed. When a figure like CZ—who backs Aster via his YZi Labs—gets dragged into rumors, traders often smash the sell button first and ask questions later. ASTER’s daily volume spiked 16% to $674.7M during the fiasco, proving how thin the line is between FUD and fortune. “In my experience,” says a BTCC analyst, “projects tied to high-profile personalities become lightning rods for volatility.” The token, ranked #46 by market cap with 2B+ circulating supply, operates across BNB Chain, Solana, Ethereum, and Arbitrum—but even multi-chain resilience couldn’t stop the bleed this time.

What Do Technicals Say Now?

ASTER’s charts paint a messy picture post-crash:

• RSI (14): 45.5 (neutral but weakening)
• MACD: Bearish momentum slowing
• Key Levels: $1.02 for recovery vs. $0.92 as make-or-break support

Data from TradingView shows no clear reversal signals yet. If you’re trading this, buckle up—it’s chop city until either side breaks.

CZ’s Political Woes Add Fuel to the Fire

Beyond crypto drama, CZ’s battling US Senator Elizabeth Warren’s corruption allegations related to Donald Trump’s presidential pardon. He’s threatened legal action if she doesn’t retract statements—a reminder that crypto giants aren’t just fighting market cycles but political crossfires too. “These controversies erode trust,” notes a CoinMarketCap contributor. “When CZ sneezes, half the altcoins catch cold.”

Lessons From the ASTER Avalanche

This episode screams two truths: 1) Always verify on-chain data before trading rumors (seriously, it takes 3 minutes), and 2) Crypto’s “hyper-efficient” information Flow often rewards trolls over thinkers. That $7.11M liquidation hole? Entirely preventable. Meanwhile, Aster’s team hasn’t commented—perhaps wisely letting the storm pass.