edgeX Investigates Sudden Volatility in EDGE Token Price
ZachXBT and edgeX’s community challenged the project’s claim that external actors caused EDGE’s collapse, while the exchange has yet to identify counterparties or release its promised incident report.
EDGE suffered a sharp sell-off on June 1, falling from $1.14 to an all-time low of $0.366 and triggering about $2.81 million in liquidations within an hour, according to the new report. edgeX said its investigation found no hack, exploit, or security breach and attributed the move to deliberate market manipulation by external parties, but blockchain investigator ZachXBT disputed that explanation, saying supply was controlled by a few insiders with low float and calling on the project to disclose counterparties and market-maker agreements. The project also said a flagged smart contract address was a legitimate deposit and withdrawal contract. As of June 2, EDGE traded around $0.64, down more than 45% over 24 hours with a market capitalization above $226 million, while edgeX had still not named the external participants, released trading data, or published the promised incident report.
- Market manipulation: Deliberate trading or coordination intended to distort an asset’s price rather than reflect genuine supply and demand.
- Low float: A situation where only a small portion of a token’s total supply is available for public trading, which can make price moves more volatile.
- Smart contract: Blockchain-based code that automatically executes predefined functions, such as handling token deposits and withdrawals.