EDGE experienced significant volatility over the past 24 hours, with its price falling from around $1.15 to approximately $0.65, briefly dipping to $0.37. Although it subsequently recovered some of its losses, selling pressure did not fully subside, leading to large-scale liquidations in the derivatives market.
Liquidation concentrated on long positions
According to Coinglass data, the total liquidation amount during this decline was approximately $6.28 million, with long positions losing about $4.83 million and short positions losing about $1.45 million. The rapid price drop followed by a rebound indicates that the market experienced a significant liquidity shock in a short period.
The project team denied experiencing a security incident.
As community speculation intensified, the edgeX team responded, stating that the volatility was not caused by a hack, exploit, or security incident. The project team indicated that preliminary investigations suggest the price crash may be related to deliberate manipulation by external entities, and they are currently cooperating with exchanges to investigate related accounts.
The project team also stated that its infrastructure, systems, and smart contracts remain secure. This statement was intended to separate the risks of "the protocol being compromised" from "abnormal market fluctuations," but it did not completely quell external doubts.
On-chain transfers and liquidity are questioned.
According to the trading team Evening Trader, shortly before the EDGE price crash, an address transferred approximately $1.33 million in EDGE into the market. Because the transfer occurred so close to the price plunge, this wallet subsequently came under scrutiny, sparking discussions about whether there was a concentrated sell-off or insufficient liquidity.
Blockchain investigator ZachXBT has questioned the project's claim of "external manipulation." He stated that explaining the crash solely by market manipulation is insufficient, as a significant portion of EDGE's supply appears to be concentrated in the hands of a few holders.
He also urged the project team to disclose more information regarding market makers and liquidity arrangements. Discussions surrounding this decline have expanded from simple price fluctuations to include token holdings structure, market-making transparency, and whether market depth is sufficient to absorb large sell orders.
