The AB token, listed on Binance Alpha, plunged nearly 99% within two minutes early on October 9.
According to live market data from Binance, AB’s price nosedived from $0.0083 to $0.0000051, erasing almost all its value. Subsequently, the token recovered to around $0.00151, though it is still down more than 80% for the day.
The event marks one of the sharpest intraday crashes on a Binance-linked platform this year.
Background: Binance Alpha and the AB Token
Binance Alpha is an on-chain trading platform within the Binance Wallet, designed to list early-stage crypto projects. Notably, the AB token was added to the platform on June 7, shortly after Binance announced its support for the project.
Because Alpha focuses on small, emerging tokens, such assets often face thin liquidity and limited trading depth, which in turn makes them prone to sharp price swings.
Trading Activity Surged Before the Collapse
In the moments leading up to the price drop, trading activity surged dramatically. More than 573,000 AB tokens were exchanged within a very short window, pushing 24-hour trading volume beyond $5 million, according to Binance Alpha data.
Despite the spike in activity, the token’s liquidity pool remains shallow at around $2.17 million, leaving little room for large trades without triggering slippage.
The market capitalization of AB is estimated at roughly $93 million, but the concentration of holdings paints a concerning picture.
Specifically, on-chain analytics show that the top ten wallets control over 97% of the token’s circulating supply. Such a high concentration means that a single large transaction can send prices spiraling, as appears to have happened here.
Possible Causes Under Review
While the exact cause of the collapse remains unclear, several plausible explanations are being discussed among market participants.
For instance, one theory suggests a “whale dump,” where a large holder sold a massive stake, triggering a cascade of sell orders. Alternatively, others suspect a “liquidity pull,” where a market maker or liquidity provider temporarily withdrew support, leaving the order book thin.
In addition, another possibility involves “oracle or smart contract errors,” where automated systems misread market data, leading to unintended sell-offs. So far, no evidence of a hack or system breach has surfaced.
No Official Statement from Binance Yet
As of now, Binance has not issued an official comment on the incident. Meanwhile, the AB token continues to trade with high volatility, and its recovery trajectory remains uncertain.
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