Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
AB Token’s Price Crash Erases 99% of Value: Here’s What Happened

AB Token’s Price Crash Erases 99% of Value: Here’s What Happened

CryptonewslandCryptonewsland2025/10/09 19:48
By:by Wesley Munene
  • AB token’s price crashed over 99%, erasing most of its value, but has since recovered slightly.
  • Trading surged before the crash, but shallow liquidity and concentrated holdings contributed to volatility.
  • The cause remains unclear, with theories suggesting whale dumps, liquidity pull, or smart contract errors.

In a turn of events, the AB token experienced a price drop, dipping from $0.0083 to a mere $0.0000051. The price drop wiped out over 99% of its value, marking one of the sharpest intraday crashes observed this year on a Binance-linked platform. Although the token has since recovered to around $0.00151, it is still down more than 80% from its previous value.

Trading Activity Spikes Preceding the Collapse

Before the crash, trading activity for the AB token surged significantly. Based on Binance Alpha records, the 24-hour trading volume exceeded $5 million, and more than 573,000 AB tokens changed hands in a brief span. 

Although the level of trading is high, the token liquidity pool is shallow, with approximately $2.17 million. Such low liquidity leaves a circumstance in which large trades may result in significant price swings, which is probably one of the causes of the extreme reduction in value.

The market capitalization of the AB token is currently estimated at around $93 million. However, the token’s concentration of holdings raises concerns. On-chain data shows that the top ten wallets control more than 97% of the token’s circulating supply. This level of concentration can create significant volatility, as a single large transaction can trigger sharp price movements.

Potential Causes of the Price Crash

There are a number of theories that are on the cause of the crash , but it is yet unclear what really caused the crash. One of the theories attributes it to a so-called whale dump, in which a big holder could have sold a sizeable portion of AB tokens, causing a selling spurt. A possible alternative is a liquidity pull, which is where a market maker or liquidity provider withdraws support temporarily, leaving the order book thin and exposed to large price movements.

 Additionally, errors in smart contract systems could have led to inaccurate market data, resulting in an automatic sell-off. So far, Binance has made no official comment on the incident. The AB token is still highly volatile, and its recovery trajectory is yet to be identified. Players in the market are still on their guard, watching the situation.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Bitcoin News Update: Bitcoin Drops 30%, Revealing 'Panda Phase'—A Mild Bear Market Lacking a Definite Bottom

- Bitcoin fell 30% to $87,080, its steepest two-month drop since 2022, driven by ETF outflows, leverage liquidations, and stablecoin declines. - Institutional confidence waned as asset managers paused accumulation, while retail investors exited en masse, worsening liquidity and market sentiment. - The Crypto Fear & Greed Index hit record lows at 15, reflecting panic amid Fed policy uncertainty and Bitcoin's 0.72 correlation with the Nasdaq 100. - Deribit's $1.76B call condor bet hints at cautious optimism,

Bitget-RWA2025/11/28 06:38

Lowe's CEO's Approach to DEI: Embedding Diversity into Operations Rather Than Symbolic Actions

- Marvin Ellison, former Target part-timer and one of eight Black Fortune 500 CEOs, led Lowe's to $20.81B Q3 revenue through operational discipline and AI-driven innovation. - His Total Home strategy integrating services and store productivity, plus 50+ AI models for inventory/price optimization, drives growth amid retail challenges. - Ellison prioritizes action-based DEI reforms like leadership-focused hiring over credentials, rejecting performative gestures post-2020 George Floyd protests. - Despite rais

Bitget-RWA2025/11/28 06:38
Lowe's CEO's Approach to DEI: Embedding Diversity into Operations Rather Than Symbolic Actions

Bitcoin News Update: Unveiling Layered Risks as Connections Between Crypto and Traditional Finance Deepen

- Bybit temporarily halted CME-linked crypto futures trading after CME Globex disruptions, exposing vulnerabilities in centralized infrastructure linking traditional and digital markets. - CME Group faced scrutiny for technical glitches suspending Bitcoin futures, despite record 9% monthly growth in crypto derivatives volume and 132% YoY expansion in notional value. - Analysts highlight cascading risks from centralized system failures, urging diversified risk strategies as institutional adoption of 24/7 cr

Bitget-RWA2025/11/28 06:38
Bitcoin News Update: Unveiling Layered Risks as Connections Between Crypto and Traditional Finance Deepen