Key Points
- Earlier today, multiple digital assets on BNB Chain and Solana experienced sharp declines.
- Large sell orders were executed by Wintermute market maker.
- DWF Labs offered support for affected users.
According to the latest reports, multiple altcoins on Binance, including ACT, DEXE, KAVA, LUMIA, TST, QUICK, HIPPO, BANANAS31, DF, and others, experienced sharp price declines in a short amount of time.
The sudden price drops were triggered by large sell orders by Wintermute, leading to a significant surge in spot reading volume.
Wintermute is a global algorithmic crypto trading firm.
However, Binance had earlier announced that it would make margin rules adjustments, potentially affecting positions opened before the update.
Wintermute Accused of Dumping Assets
On-chain data shows that Wintermute started dumping assets off their balance sheet, including some heavy memecoins positions where they were acting as a market maker, Bitbot reported earlier.
ACT, DEXE, KAVA, LUMIA, TST, QUICK, HIPPO, BANANAS31, DF, and others experienced significant price crashes.
BNB Chain and Solana tok ens price dropsBitbot, which is a non-custodial AI meme trading terminal on Telegram, suggested on X that Wintermjte might have been hacked, or an internal move could have been involved.
Wintermute just started dumping assets off their balance sheet — including heavy meme coin positions where they were acting as MM.
Within 1 hour:💥 $ACT nuked (folded 2x in minutes)
🪙 BNB Chain memes like $MUBARAK, $TUT , $BABYDOGE also dumped
📉 ~10 tokens crashing while… pic.twitter.com/K6lGsnb6Vn
— Bitbot (@Official_Bitbot) April 1, 2025
However, following the initial post, they followed up with a post offering an update on the Wintermute dump and ACT memecoin crash – Binance is adjusting margin rules.
Binance Adjusts Leverage and Margin Tiers, Triggering Whale Liquidation
Bitbot said that multiple sources pointed out that Binance is adjusting margin rules, but giving market makers only three hours to react.
They noted that the event triggered price drops for ACT and other digital assets due to:
- Forced liquidations
- Panic sell-offs
- Stop-losses
Lookonchain shared a post noting that Binance updated leverage and margin tiers on coins like ACT, and in the process, a whale got liquidated for almost $3,8 million at $0.1877.
Since then, ACT’s price dropped by over 50% at the time of Lookonchain’s post.
They also shared Binance’s announcement in which the exchange stated that Binance Futures updates the leverage and margin tiers of multiple perpetual contracts, including ACTUSDT, PNUTUSDT, 1000SATSUSDT, NEOUSDT, TURBO/USDT, and MEWUSDT at 10:30 (UTC).
In its announcement, Binance clearly stated that the existing positions opened before the update will be affected and futures running grid might expire due to updates.
Binance updated leverage margin tiers on tokens like $ACT — and a whale got liquidated for $3.79M at $0.1877.
Since then, the price of $ACT has plunged more than 50%. https://t.co/MT0EgNW8ib pic.twitter.com/CRuTR9bwSh
— Lookonchain (@lookonchain) April 1, 2025
Binance Accused of Not Announcing Market Makers Earlier
Some voices in the industry said that Binance should have announced bigger market makers three hours in advance about the upcoming changes, and should have evaluated if there were whales with large positions to notify them properly.
Binance released the official announcement at exactly 15:32, and the sharp price drop for ACT debuted at 18:30, less than three hours after the announcement.
Other coins saw similar price drops, likely due to massive short DEX positions, sparking panic.
At the moment of writing this article, ACT’s market cap is surging following the earlier drop, but the coin is still down by 48% for the day.
ACT 1-hour price in USDSupport for Users Affected by the Dump
Meanwhile, Andrei Grachev, head of DWF Labs and Falcon Stable, shared a post on X, telling users who have been affected by the dump to reach out, because he and his team are ready to allocate funds for a buyback and strategize a recovery plan.
He said that we have to get God Green Candles back.
If your project has been affected by this weird dump, reach out to us.
We are ready to allocate funds for a buy back and strategize a recovery plan for your token. @DWFLabs and our cash are here for help
We need to get God Green Candles back
LFG!— Andrei Grachev (@ag_dwf) April 1, 2025
