ALPACA Token Crashes 50% After Suspicious 650% Rally—Just Another Day in DeFi

ALPACA’s wild ride leaves traders questioning whether they’re farming yield or just harvesting losses.

The token skyrocketed to unsustainable heights before gravity—and possibly some shady activity—kicked in. Now the community’s left picking through the wreckage.

Pro tip: When a project named after a domesticated animal starts mooning, maybe don’t FOMO in. Just saying.

The drop came after a massive 650% rally, which some attributed to a short squeeze and a temporary halt in new token issuance by Alpaca Finance. The surge also came after the Alpaca Finance team canceled its planned token issuance for a market maker following Binance’s decision to delist the token.

“[…] please note, our Market Maker had requested more ALPACA from warchest to support today’s high volume, but after feedback from the community, we decided not to mint it.”

Binance

It’s still unclear what exactly triggered the token’s unexpected sixfold surge and the subsequent plunge amid the negative news of its upcoming delisting from the crypto exchange.

Alpaca Finance is a decentralized finance app on BNB Chain with tens of millions in funds deployed across its V1 and V2 networks, offering borrowing and reward-earning features similar to Ethereum’s Aave. Binance announced on April 24 that it will remove all spot trading pairs for four tokens, including ALPACA, referring to project commitment, development activity, trading volume, and compliance as the reason behind the move.