The EDGE token plunged to a record low on June 1, sparking allegations of insider manipulation and drawing criticism from prominent blockchain investigator ZachXBT.
The token fell to approximately $0.40, less than two weeks after reaching an all time high of $1.54. The dramatic decline erased more than half of its value in a single day and triggered over $6.2 million in liquidations across major cryptocurrency exchanges.
EdgeX Denies Hack Claims
As the selloff intensified, EdgeX, the decentralized perpetual futures platform behind the EDGE token, acknowledged the unusual price action in a post on X. The team said it was investigating the sudden market movement to determine its cause.
A few hours later, the company issued a stronger statement, insisting that its protocol had not been compromised.
According to EdgeX, there was no hack, exploit, or security breach. Instead, the team claimed that preliminary findings pointed to deliberate market manipulation by external actors. The platform said it was cooperating with exchanges and other partners to identify those responsible and promised to release a more detailed report once its investigation was complete.
ZachXBT Questions EdgeX’s Explanation
The explanation failed to convince everyone.
ZachXBT publicly challenged EdgeX’s account of events, arguing that the token’s supply appeared to be concentrated among a small group of holders while maintaining a relatively limited circulating supply. He also called on the project to disclose information about its counterparties and market making agreements if it genuinely wanted to promote transparency.
Mocking the company’s internal review, the investigator sarcastically summarized the situation as a case of a project investigating itself and finding no wrongdoing despite controlling most of the token supply.
His comments quickly gained attention within the crypto community, where concerns about token concentration and market manipulation remain recurring issues.
Millions Liquidated as Volatility Surges
The market impact was severe.
Data from CoinGecko showed that EDGE collapsed from around $1.26 to nearly $0.40 before recovering slightly to about $0.62.
Meanwhile, figures from CoinGlass revealed that the price crash triggered roughly $6.2 million in liquidations over a 24 hour period. Long traders suffered the majority of the losses, accounting for approximately $4.84 million.
Most of the forced liquidations occurred on major trading venues including Binance, Bybit, and OKX. Together, these platforms accounted for most of the liquidated positions, affecting at least 3,840 traders as daily volatility surged to nearly 75%.
Growing Security Concerns Across Crypto
The rapid collapse immediately led many market participants to suspect a security breach, which likely explains why EdgeX moved quickly to deny any hacking incident.
The reaction comes amid a difficult year for crypto security, with several high profile attacks shaking investor confidence.
Among the latest incidents was an exploit targeting DxSale, where attackers drained approximately $7.3 million from more than 1,400 liquidity pools connected to older contracts on BNB Chain. Elsewhere, hackers stole roughly $11 million from the Verus Bridge, while liquidity provider Trusted Volumes lost nearly $6 million in a separate incident.
Against this backdrop, any sudden token collapse is likely to raise immediate concerns about potential exploits, even when projects insist that no security breach has occurred.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
