Act I The AI Prophecy (ACT), a token associated with the eponymous project focused on artificial intelligence, released a post-mortem about the fall of their token on Wednesday..
On Tuesday, the token experienced a sudden and severe price drop, plunging 58% from $0.19 to $0.08 in less than an hour. According to CoinGecko data, the token’s market capitalization shed $96 million.
The adjustment triggered a wave of liquidations, with blockchain analytics platform Lookonchain reporting that a whale was liquidated for $3.79 million at $0.1877. The impact of these liquidations intensified selling pressure across the market.
The sharp decline coincided with Binance’s update to leverage and margin tiers for multiple tokens, including ACT.
Binance’s preliminary findings indicated that four users, including three VIP traders and one non-VIP, collectively sold over $1 million worth of ACT on the Binance spot market, accelerating the price decline.
According to the team, Binance’s leverage adjustments were announced with short notice, forcing traders and market makers with large positions to close or downsize, leading to cascading sell-offs.
In response, Act I addressed the community, assuring that the project was investigating the situation and working with the relevant parties, before then releasing this latest report.
Currently trading at $0.05643, ACT has lost nearly 94% from its all-time high of $0.9198, though it remains 340% above its lowest price. Market activity has also declined, with 24-hour trading volume dropping 21.6% to $477.7 million.
The sell-off in Act I The AI Prophecy (ACT) has intensified, with the token plunging 37.4% in the past hour and down 70.8% over the last week, according to CoinGecko.
He urged teams to build a strong product first and only introduce a token after achieving product-market fit. His remarks echo previous criticisms of AI-focused crypto projects.
In a post on X, CZ stated that “many AI agent developers focus too much on their token rather than the agent’s actual usefulness.”
Amid the turmoil, Binance co-founder Changpeng “CZ” Zhao has weighed in on the broader AI and crypto intersection, criticizing AI projects that prioritize token launches over real utility.