Crypto Tokens Fall by 50% After Possible Trading Bot Glitch
Several cryptocurrency tokens plummeted by as much as 50% during a half-hour window Tuesday (April 1) on the Binance trading platform.
As Coindesk reported, the event left market observers speculating whether a misconfigured trading bot could have caused the drops, though there was no immediate explanation.
According to the report, none of the tokens in question are related or even in the same sector. Data showed an uptick in selling volumes at around the same time, with no other tokens on Binance seeing comparable spikes.
The Coindesk report speculates that the volatility could stem from Binance’s announcement of changes in leverage requirements and margin tiers for perpetual contracts for a number of tokens, including ACT/USDT.
The exchange said the new rules would apply to existing positions, Coindesk said, which likely sparked position adjustments by trading bots, causing price volatility in perpetuals, which soon spilled over to spot prices.
The drop spread to other trading platforms, the report added, with the tokens in question falling by equivalent amounts on centralized and decentralized exchanges.
The news follows a recent slump in both cryptocurrencies and crypto-linked stocks due to traders’ concerns about a global trade war and a possible recession.
These stocks had surged in value at the start of the year when President Donald Trump prepared to return to the White House. On the day of Trump’s inauguration, the price of bitcoin jumped to an all-time high.
But now, Trump’s tariff plan has left the larger economy feeling unsettled, while some crypto advocates are lukewarm on his digital asset efforts. For example, as Bloomberg News reported earlier this week, while Trump issued an executive order to create a strategic bitcoin reserve, he did not authorize the use of taxpayer money to expand it.
Meanwhile, PYMNTS wrote Tuesday about companies’ use of assets like bitcoin as a hedge against economic uncertainty and inflation.
For example, Japanese hotel company Metaplanet on Tuesday purchased 696 bitcoin for its corporate holdings at a cost of around $60 million. And last week, video game retailer GameStop announced its board had approved a revision of its corporate investment policy to permit the company to purchase bitcoin with its corporate cash.
“Yet, as digital assets become more integrated into mainstream finance, regulatory scrutiny is likely to intensify,” that report said. “Treasurers are being tasked with ensuring their systems are equipped to meet heightened compliance standards without sacrificing operational efficiency.”
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