Binance responds to the crash of tokens like ACT: Some users temporarily sold tokens worth over $1 million, and during the decline, some users' contract liquidations led to the drop of other tokens
ChainCatcher news, Binance responded to the recent drop in some Meme coins like ACT, stating, "After preliminary investigation, we found that certain low market cap tokens experienced a chain reaction of declines, including three VIP users who cross-sold tokens worth approximately 514,000 USDT in a short period on the spot market, as well as one non-VIP user who transferred a large amount of ACT from other platforms and sold tokens worth approximately 540,000 USDT in a short time on the spot market.When the prices dropped, some users' futures contracts were liquidated, leading to declines in other tokens. Currently, no single account with significant profits has been identified. Since these tokens are fully circulating in the secondary market, the platform cannot intervene in any user's selling behavior. We will continue to investigate this incident, and if there are updates, Binance will further synchronize relevant details.Binance regularly adjusts leverage multiples based on the liquidity, market sentiment, and trading volume of all trading currencies. To proactively guard against potential volatility and risks, we have taken preventive measures to lower leverage multiples. Recently, Binance contracts have continuously issued adjustment announcements for the ACTUSDT perpetual contract, during which the market showed no unusual movements, nor did we actively reduce any user's positions. Market makers are an important part of the industry ecosystem, and Binance also provides a complete market maker program to incentivize more market makers to join Binance, enhancing market liquidity.Due to recent significant market fluctuations, to ensure the safety of users' assets and reduce trading risks, Binance will make timely leverage adjustments based on market conditions to mitigate systemic risks in the entire trading market. Binance also reminds all users to manage their risk accordingly."