In a shocking turn of events, the recent crash of EdgeX token has sparked allegations of insider manipulation from popular on-chain investigator ZachXBT. The decentralized exchange (DEX) platform has, however, attributed the decline to an external party.
The Fall of EdgeX Token
Launched in February 2021, EdgeX has been making headlines for all the wrong reasons lately. The token's price plummeted by more than 85% from its peak in April, leaving many investors dismayed and questioning the platform's integrity.
ZachXBT's Allegations
ZachXBT, known for his meticulous on-chain investigations, claimed that EdgeX insiders controlled nearly the entire supply of the token with a thin float. He alleged that this allowed them to manipulate prices at will.
"EdgeX has a small float and appears to be highly concentrated among insiders," ZachXBT tweeted, adding, "This is a recipe for disaster."
EdgeX's Response
In response to these accusations, EdgeX officials have blamed the token crash on an external party. Sources familiar with the matter claim that a large seller initiated a sell-off, causing panic among retail traders and further exacerbating the fall in price.
Implications for Retail Traders
What does this mean for retail traders? The picture emerging is one of caution. With allegations of insider manipulation swirling, investors are advised to tread carefully when dealing with tokens issued by decentralized exchanges.
The Bottom Line
As things stand, the EdgeX token crash serves as a stark reminder of the risks associated with investing in cryptocurrencies. It underscores the importance of conducting thorough research and due diligence before making any investment decisions.
Investors should consider using tools such as our crypto profit/loss calculator, liquidation price calculator, and crypto tax calculator to help manage their portfolios more effectively.