The decentralized exchange edgeX attributed the more than 40% drop in its EDGE token price to "deliberate" manipulation by an unknown external party. However, prominent on-chain investigator ZachXBT rejected these claims, offering a different assessment. According to CoinMarketCap, the price of EDGE plunged from $1.20 to $0.3663 on Tuesday, a drop of nearly 70%. This was reported by.
The edgeX team announced on the social network X that it is monitoring the sharp and irregular movements in the token price and is conducting an active investigation. In response, ZachXBT noted that the project's total supply is controlled by a group of insiders and that the token is highly vulnerable to such volatility due to its low float. He demanded that the project disclose its agreements with market makers.
Currently, only 350 million of the 1 billion EDGE tokens are in circulation, meaning two-thirds of the total supply has not yet entered the market. In such low-liquidity conditions, sales by large holders can lead to a sharp price crash. The edgeX platform insists that system security has not been compromised and that the issue is solely an external attack on market integrity.
ZachXBT reacted sarcastically to the project's statement, writing that it is natural for a party controlling almost the entire supply not to find itself guilty. According to DefiLlama, edgeX ranks 16th in trading volume, with a Total Value Locked (TVL) of $137 million. The decline in overall DEX market activity also poses additional risks for such low-liquidity tokens.
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