Wintermute's ACT Sell-Off Triggers Meme Coin Crash, Binance Policy Change Alleged

In Brief:

Wintermute sold off large amounts of ACT, causing a 50% price crash

Binance reportedly lowered ACT leverage limits, triggering forced liquidations

Community backlash grows as market confidence in meme coins weakens

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Wintermute, one of crypto’s most active market makers, unexpectedly dumped a large volume of ACT and other BNB chain meme coins on April 1, sending prices plummeting. ACT alone dropped over 50%, triggering panic across the meme sector.

Wintermute CEO Evgeny Gaevoy denied any intentional dump, claiming the firm reacted after the move and began re-buying tokens post-sale. However, blockchain sleuths pointed to Binance as a potential trigger—alleging the exchange quietly reduced the leverage cap for ACT, resulting in forced liquidations.

Yi He of Binance responded that her team is investigating and hinted another entity might be involved, adding to the confusion.

With meme coin confidence already fragile, this event has drawn comparisons to last week's Hyperliquid meltdown. The combination of opaque policies and sudden liquidations may further rattle traders relying on leverage in volatile markets.

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