AB, one of the top ten tokens on Binance Alpha, experienced a staggering 99% price drop during early Asian trading hours today, sparking widespread concern among traders.
According to market watchers, the AB crash was not caused by a technical exploit or systemic issue but rather by a massive coordinated sell-off. Surprisingly, the dump didn’t last long — the token quickly rebounded, recovering nearly all its losses.
SponsoredWhy Did The AB Token Crash?
According to Wu Blockchain, on October 9, AB, formerly known as the Newton Project, plummeted from $0.0083 to $0.0000051 in just two minutes. The massive drop unfolded on Binance Alpha and caused a stir in the market.
Furthermore, traders caught in the turmoil reported significant losses, with one individual claiming a $600,000 hit. But what triggered the sudden crash?
Market watchers pointed to evidence of a large-scale sell-off as the likely cause. In an X (formerly Twitter) post, analyst Specter highlighted that the AB crash was triggered by massive sell orders on the Binance Alpha 2.0 platform.
He explained that at 01:27 UTC, one wallet sold 192.37 million AB for $932,790 USDT. The next minute, another wallet sold 501.43 million AB for $282,910 USDT.
Sponsored“Binance Alpha Project AB just had someone dump $500,000 in a single transaction on this V3 pair. Right after that was another $80,000 which removed the last of the liquidity. On V3 liquidity pools you don’t have to supply both sides of the pair. Most of the USDT in the LP is at much higher prices so when someone dumped that many AB tokens there was only about $600,000 total USDT at those levels,” another market watcher added.
AB Token Stages a Remarkable Recovery
Nonetheless, the token recovered after the sharp decline and reclaimed all its previous gains. BeInCrypto Markets data showed that AB even surpassed its pre-crash level.
At the time of writing, the altcoin was trading at $0.0084, up 0.51% over the past 24 hours.
Still, the crash has had a noticeable impact on market sentiment. CoinGecko data shows that 67% of traders remain bearish on AB, reflecting lingering uncertainty. The team’s continued silence has only deepened those concerns.
Despite the extreme price swings and reports of large-scale sell-offs, AB DAO has yet to issue any statement addressing the situation.
Thus, the incident highlights broader vulnerabilities in the cryptocurrency sector. While AB’s recovery mitigated immediate damage, it raises questions about oversight and the sustainability of these tokens in the decentralized finance space.
