ALPACA Token Faces Volatility Amid Binance Delisting
- Leadership issued warnings about possible market maker activity.
- ALPACA experienced a rapid 50% price drop.
- Total Value Locked dropped by 40%.
The ALPACA token’s recent price crash indicates significant market maker manipulation, highlighting potential risks for traders and possible regulatory attention.
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Alpaca Finance’s token, ALPACA, suffered a dramatic decline amidst volatile conditions sparked by Binance’s upcoming delisting announcement. The official statement warned investors early about potential price manipulation.
The delisting prompted a short squeeze that saw ALPACA initially spike to $0.36, a significant increase, before a steep drop. Market players were alerted to the anticipated volatility, as indicated by the Alpaca Finance team’s cautionary communication.
The fallout has primarily affected ALPACA, with on-chain data showing increased trading volumes. Whales and large holders manipulated conditions, driving the rapid price changes.
“Whales are manipulating the price and liquidating shorts. We’ve seen this many times — whales pump the price to lure retailers in, only to use them as exit liquidity.” — Wise Advice, Altcoin Analyst
Market leaders and analysts have observed similar outcomes following previous delisting announcements.
Potential regulatory actions and ongoing community concerns may influence how the crypto industry addresses such market anomalies. Previous delisting events have shown sharp volatility, setting a precedent impacting token stability and trader confidence.
