The EDGE token plunged to a record low of roughly $0.40 on June 1, less than two weeks after reaching an all-time high of $1.54.
The sudden collapse erased about 51% of the token’s value in a single day, triggered more than $6.2 million in liquidations across major exchanges, and prompted accusations of insider manipulation from on-chain researcher ZachXBT.
edgeX Points the Finger Outward
edgeX, the decentralized perpetual futures DEX that issues the EDGE token, posted on X several hours after the sell-off began, acknowledging what it described as “a sudden and irregular price movement.” The team said it was investigating the event. Two hours later, the project issued a firmer statement declaring:
“The edgeX protocol was not compromised in any way. This is not a hack, exploit, or security breach. What we have identified so far suggests deliberate attempts by an external party to manipulate the market price of EDGE.”
The company added that it was cooperating with relevant exchanges and platforms to determine the cause and pursue accountability. It promised a more detailed update once those inquiries conclude.
Not everyone accepted that explanation. ZachXBT, an on-chain investigator known for exposing questionable behavior in crypto, pushed back and argued the EDGE supply appeared concentrated in the hands of a small group, resulting in a low circulating float. He challenged edgeX to disclose the platform’s counterparties and market-maker agreements if transparency was truly a priority, and mocked the project’s self-investigation with a pointed paraphrase:
“We investigated ourselves and did not find ourselves guilty even though we control nearly the entire supply.”
On the market side, the fallout was stark. CoinGecko data showed EDGE sliding from about $1.26 to nearly $0.40—a new all-time low—before recovering to roughly $0.62 at the time of reporting.
CoinGlass data indicated the downturn led to approximately $6.2 million in liquidations over 24 hours, with long positions making up about $4.84 million of that total. Most forced liquidations occurred on Binance, Bybit, and OKX, which together accounted for the majority of closures that affected at least 3,840 traders. Price volatility for the token spiked to 74.77% on the day.
A Difficult Time for Crypto Security
There is understandable skepticism when a token’s price plunges so sharply; many observers initially suspected a hack, which explains edgeX’s quick denial of any security breach.
The broader crypto industry has seen multiple security incidents this year that have heightened caution. Notably, an attacker drained roughly $7.3 million worth of tokens from over 1,400 liquidity pools tied to legacy DxSale contracts on BNB Chain. Separately, a hacker stole about $11 million from the Verus bridge, and TrustedVolumes, a liquidity provider, lost just under $6 million.
Those incidents, and others like them, help explain why market participants are quick to suspect exploits or manipulation when a token experiences sudden, extreme price movement. In the case of EDGE, questions about token concentration and market-making arrangements have now become central to ongoing discussions as exchanges, investigators, and the edgeX team continue to probe what occurred.