Last Night, the Prices of Two Major Altcoins Officially Dropped to $0 on Binance – An Unbelievable Event

The cryptocurrency market was shaken by sharp declines on Binance early this morning. Many altcoins briefly lost over 90% of their value. IoTeX (IOTX), in particular, briefly dropped to $0, while Cosmos (ATOM) similarly plummeted to zero.

BitMEX co-founder Arthur Hayes offered a critical assessment of the crash. He stated that market rumors suggest that the sudden drop was triggered by the automatic liquidation of collateral tied to cross-margined positions by some major centralized exchanges (CEX).

ATOM fiyatında yaşanan büyük düşüşü gösteren grafik.

Chart showing the decline in IOTX price.

Arthur Hayes made the following statement:

“Word on the street is that many altcoins fell sharply as major CEXs automatically liquidated collateral tied to cross margin positions. Congrats to those who bought on the dip, we won’t see these levels again for a long time.”

According to experts, such sudden “flash crashes” are typically caused by a lack of liquidity, algorithmic trading, and the chain liquidation of leveraged positions. Hayes’s statements suggest that this market crash may have been caused by an automated liquidation chain rather than a systematic error or manipulation.

*This is not investment advice.

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