{"id":20305,"date":"2025-04-02T10:01:47","date_gmt":"2025-04-02T10:01:47","guid":{"rendered":"https:\/\/nft.runfyers.com\/index.php\/2025\/04\/02\/altcoins-suddenly-crash-on-binance\/"},"modified":"2025-04-02T10:01:47","modified_gmt":"2025-04-02T10:01:47","slug":"altcoins-suddenly-crash-on-binance","status":"publish","type":"post","link":"https:\/\/nft.runfyers.com\/index.php\/2025\/04\/02\/altcoins-suddenly-crash-on-binance\/","title":{"rendered":"Altcoins Suddenly Crash on Binance"},"content":{"rendered":"<p><\/p>\n<div>\n<p><span style=\"font-weight: 400;\">On April 1st, the crypto community was caught off guard as a series of altcoins, including ACT, KAVA, DF\u2026 plummeted by nearly 50%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">What was the common thread among these tokens? All of these tokens were associated with the same market maker: Wintermute. This quickly led to speculation within the community that Wintermute had dumped its entire holdings, triggering sharp declines and widespread panic.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, Wintermute\u2019s CEO promptly responded, firmly denying the allegations and dismissing them as unfounded rumors.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_tough_year_for_Wintermute\"\/><strong>A tough year for Wintermute<\/strong><span class=\"ez-toc-section-end\"\/><\/h2>\n<p><span style=\"font-weight: 400;\">In early 2025 \u2013 as many altcoins hit new all-time lows (ATLs), Wintermute once again found itself under scrutiny for allegedly triggering sharp market volatility. According to data from Arkham, between January 27 and 28, Wintermute received over $100 million from Binance \u2013 a sum significant enough to shake the market during that period.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, Evgeny Gaevoy, CEO of Wintermute, clarified that all transactions between Binance and Wintermute were solely for market-making and liquidity provision purposes.<\/span><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">What Wintermute does thread<\/p>\n<p>It\u2019s been exceptionally \u201cfun\u201d on twitter last few days with some accounts hitting new lows in terms of market structure understanding. I\u2019ve written a few times in the past about what we do and how we prefer to do things, but maybe it\u2019s a good time for\u2026<\/p>\n<p>\u2014 wishfulcynic (@EvgenyGaevoy) <a href=\"https:\/\/twitter.com\/EvgenyGaevoy\/status\/1886254961576579487?ref_src=twsrc%5Etfw\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow external noopener noreferrer\">February 3, 2025<\/a><\/p>\n<\/blockquote>\n<p>As the market began to stabilize, Wintermute once again became the scapegoat for a major crash involving nine tokens listed on Binance. According to data from Arkham, Wintermute withdrew liquidity from several AMMs, triggering price drops of more than 60% for tokens including ACT, DEXE, KAVA, DF, HIPPO, BANANAS31, LUMIA, TST, and QUICK.<\/p>\n<p><span style=\"font-weight: 400;\">Other altcoins were also affected, with some posting losses nearing 40%.<\/span><\/p>\n<div id=\"attachment_150094\" style=\"width: 1002px\" class=\"wp-caption alignnone\"><noscript><\/noscript><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-150094\" class=\"lazyload wp-image-150094 size-full\" src=\"https:\/\/nftevening.com\/wp-content\/uploads\/2025\/04\/multiple-altcoin-crash.jpg\" alt=\"A tough year for Wintermute\" width=\"992\" height=\"1280\"\/><\/p>\n<p id=\"caption-attachment-150094\" class=\"wp-caption-text\">Multiple altcoins crashed. Source: X<\/p>\n<\/div>\n<p><span style=\"font-weight: 400;\">However, echoing events from earlier in the year, CEO Evgeny Gaevoy denied any accusations of rug pulls or mass dumping. He clarified that Wintermute\u2019s actions were purely related to arbitrage trading.<\/span><\/p>\n<blockquote>\n<p><i><span style=\"font-weight: 400;\">We\u2019re simply engaging in AMM arbitrage. Honestly, we\u2019re also wondering what\u2019s going on in the market,\u201d Gaevoy said.<\/span><\/i><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400;\">In response to the backlash, Wintermute reportedly began buying back ACT and several of the affected tokens.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Binance_As_the_new_market_villain\"\/><strong>Binance: As the new market villain<\/strong><span class=\"ez-toc-section-end\"\/><\/h2>\n<h3><strong>Binance\u2019s sudden policy shift sparks market turmoil\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">If Wintermute had no intention of dumping tokens, the community began to ask a more pressing question: Who was truly behind the crash?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some speculated that Binance may have \u201cindirectly\u201d triggered the steep decline in several altcoins. At 2 PM (GMT) on April 1, the exchange abruptly announced changes to leverage and margin requirements for certain tokens. For open positions, Binance automatically applied the new terms.<\/span><\/p>\n<blockquote>\n<p><i><span style=\"font-weight: 400;\">Read more: <\/span><\/i><a href=\"https:\/\/nftevening.com\/more-bnb-chain-native-token-list-on-binance\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\"><i><span style=\"font-weight: 400;\">There Will be More BNB Chain Token Listed on Binance<\/span><\/i><\/a><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400;\">The move led to a wave of forced liquidations, pushing many traders into the red and sending altcoin prices into freefall. The impact wasn\u2019t limited to derivatives markets; the sell-off quickly spilled over to spot markets, contributing to a broader market downturn.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The suddenness of the change raised concerns across the community. Many argued that Binance\u2019s actions were too abrupt, leaving traders with little time to adjust. Some now wonder: could similar events unfold again?<\/span><\/p>\n<h3><strong>Binance responds, but doubts remain<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">In response, Binance co-founder Yi He stated that the team is gathering evidence and will issue an official explanation soon. She also hinted that certain well-known figures in the crypto space may be intentionally damaging Binance\u2019s reputation by spreading negative narratives.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Still, the issue remains unresolved. Many investors argue that Binance\u2019s recent actions have had a disproportionately negative impact on the market, leaving positions worse off than just a day prior.<\/span><\/p>\n<blockquote>\n<p><i><span style=\"font-weight: 400;\">Read more: <\/span><\/i><a href=\"https:\/\/nftevening.com\/recap-price-manipulation-hyperliquid\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\"><i><span style=\"font-weight: 400;\">Recap of the Price Manipulation in Hyperliquid<\/span><\/i><\/a><\/p>\n<\/blockquote>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\"https:\/\/nftevening.com\/altcoin-suddenly-crash-on-binance\/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=altcoin-suddenly-crash-on-binance\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On April 1st, the crypto community was caught off guard as a series of altcoins, including ACT, KAVA, DF\u2026 plummeted by nearly 50%. What was the common thread among these tokens? All of these tokens were associated with the same market maker: Wintermute. This quickly led to speculation within the community that Wintermute had dumped [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":20306,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[9],"tags":[21],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/nftevening.com\/wp-content\/uploads\/2025\/04\/thumb-wintermute-binance-1.jpg","jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/20305"}],"collection":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/comments?post=20305"}],"version-history":[{"count":0,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/20305\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/media\/20306"}],"wp:attachment":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/media?parent=20305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/categories?post=20305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/tags?post=20305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}