EDGE Token Drops Over 40% as edgeX Cites Manipulation and Faces Supply Questions

edgeX said concentrated selling across PancakeSwap during thin liquidity triggered liquidations and spillover to perpetual and centralized markets, prompting user compensation and a 200,000 USDC bounty as critics questioned supply concentration.

USDC

CAKE

23d ago

Fact Check

Multiple independent sources corroborate the core facts. Cryptopolitan and Odaily both confirm the price collapse from ~$1.14 to ~$0.32 (a ~70-77% drop) and $2.81M in liquidations. Both also confirm the dispute: edgeX officially blamed external manipulation while ZachXBT challenged this, citing insider-controlled low-float supply. The specific low of $0.3208 is consistent with reported lows of ~$0.32. Coinglass and Binance are cited as the underlying data sources by these reports.

Summary

EDGE fell more than 40% in early June after edgeX said 174 addresses sold roughly 159,000 EDGE into PancakeSwap during a low-liquidity window, triggering a sharp initial drop that spread to edgeX perpetuals and major centralized exchanges. The platform said there was no hack, exploit, or security breach, blamed deliberate market manipulation amplified by crowded long positioning, and announced compensation of up to 100,000 USDC per eligible user plus a 200,000 USDC bounty for information on the attackers. Blockchain investigator ZachXBT disputed the explanation, saying insider-linked low-float supply control required fuller disclosure.

Terms & Concepts

Thin liquidity: A market condition with limited buy and sell depth, where relatively modest trading can cause large price moves.
Perpetual markets: Crypto derivatives markets for contracts that track an asset's price without a fixed expiry date.
Liquidations: Forced closure of leveraged trading positions when margin requirements are no longer met, often accelerating price volatility.