April 1 brought unexpected turbulence to the altcoin and memecoin sectors, with a number of lesser-known tokens experiencing steep declines — some plunging by more than 50% within minutes. Despite the chaos, the broader cryptocurrency market, led by Bitcoin, remained largely unaffected.
ACT Token Nosedives Nearly 60% in Under an Hour
One of the hardest-hit assets was Act I The AI Prophecy (ACT), a cryptocurrency tied to an artificial intelligence-themed project. The token tumbled by 58%, falling from $0.19 to $0.08 in under 60 minutes, slashing nearly $96 million off its market capitalization, per CoinMarketCap figures.
This sudden plunge wasn’t isolated. It mirrored broader declines across the altcoin space, with tokens like sudeng (HIPPO), CZ’s Dog (BROCCOLI), Kishu Inu (KISHU), DeXe (DEXE), and dForce (DF) also facing sharp sell-offs.
Act I Responds to Market Fallout
In response to the steep decline, the team behind Act I issued a public statement via X, acknowledging the situation and assuring investors that they are actively working to understand and resolve the issue.
“Our team is actively investigating and working collaboratively with all relevant parties to address this matter,” the message stated. They also mentioned that a formal response strategy is already in the works in collaboration with trusted partners.
Binance Leverage Adjustment Tied to Whale Liquidation
Blockchain analytics firm Lookonchain offered one possible explanation: Binance modified leverage and margin settings for various altcoin pairs — including ACT — on April 1. This triggered significant liquidations, including a massive $3.79 million position at a price point of $0.1877.
According to Binance’s own blog, the Binance Futures platform updated trading parameters for the ACT/USDT pair at 10:30 UTC, affecting positions opened before the change. The sudden adjustment may have caused automatic position closures, contributing to the rapid price dip.
Rumors Swirl Around Wintermute’s Alleged Sell-Off
Compounding the confusion, community speculation pointed toward Wintermute, a major algorithmic trading firm, allegedly offloading several altcoin holdings. Some crypto sleuths theorized it was a risk management move, possibly in response to involvement with USD1, a stablecoin associated with World Liberty Financial, a project linked to Donald Trump.
Others weren’t so sure. Theories ranged from margin calls to insolvency, and even suggestions of a security breach.
“MMs don’t just nuke their own books for fun. Either it’s a hack, insolvency, or someone is getting margin called hard,” remarked DEFI Kadic on X.
Wintermute CEO Denies Involvement
In the midst of mounting speculation, Evgeny Gaevoy, co-founder and CEO of Wintermute, took to X to reject claims that the firm had anything to do with the April 1 altcoin bloodbath.
“Not us [for what it’s worth], but also curious about that post mortem,” he commented in a reply to accusations you may see below.
The original accuser, ilikeblocks, later walked back their claim and even offered praise:
“They’re making markets better for all of us and in comparison to their competition they’re really not that shady”.