The EDGE token of the decentralized exchange edgeX has experienced a sharp decline, losing over 70% of its value in less than an hour. This has sparked active discussions among investors and analysts seeking the reasons behind the sudden volatility.
This is reported by Business • Media
edgeX Team’s Position: Market Influenced by Manipulation
EDGE, which was recently trading at around $1.13, fell to $0.34 and later partially recovered to $0.8. As of now, its price fluctuates around $0.65, which, however, has not restored market confidence.
The edgeX team issued a statement emphasizing that the protocol remains secure and the platform has not been hacked or exploited. They highlighted that preliminary results of their own investigation indicate attempts to manipulate the price by an external party. To clarify the circumstances, the team is cooperating with centralized exchanges and other partners. They promise to release a detailed report after the investigation is completed.
“The edgeX protocol has not been compromised in any way. It was not a hack, exploit, or security breach.”
ZachXBT and Analysts on the Role of Insiders and Liquidity Drain
On-chain researcher ZachXBT pointed out that a significant portion of the EDGE supply was allegedly controlled by a small circle of insiders. He urged the team to disclose counterparties and the terms of cooperation with market makers that could have influenced this event.
“We all know that the supply of edgeX tokens was effectively controlled by a small group of insiders under conditions of low token volume in circulation.”
Additionally, a user under the pseudonym giveno referred to the situation as a “classic scenario of a market maker’s farewell gesture.” He noted that on-chain data confirms a coordinated withdrawal of funds from several exchanges (Bybit, OKX, Bitget, Gate), a liquidity withdrawal of over $1.6 million from SpotVault, redistribution of tokens among several addresses, some of which belong to exchanges, as well as mass liquidations totaling around $2.81 million, with the majority occurring in long positions.
Comparing this case to previous collapses of the OM, LAYER, and RAVE tokens, analysts point to the recurrence of similar scenarios for a number of low-liquidity assets.
A similar situation previously occurred with the GUA token, which plummeted 85% after a suspicious transaction, also triggering a wave of discussions about the security and transparency of crypto projects.
