EDGE token crashes to $0.40, $6.2M liquidations hit traders

The native token of the decentralized derivatives platform edgeX, EDGE, experienced a severe price collapse on June 1, falling from approximately $1.20-$1.54 to an intraday low near $0.37-$0.40. The token later partially recovered to trade around $0.64-$0.65. The sharp decline triggered significant liquidations across major cryptocurrency exchanges, with data indicating over $6.2 million in leveraged positions were forcibly closed, affecting thousands of traders.

In response to the crash, the edgeX team issued a statement acknowledging a sudden and irregular price movement and stating that an investigation was underway. The project later clarified that its protocol had not been hacked, exploited, or suffered a security breach. Instead, the team said preliminary findings pointed to deliberate attempts by an external party to manipulate the market price of EDGE, framing it as a market integrity issue.

This explanation was met with skepticism by prominent on-chain investigator ZachXBT. He publicly challenged the project's narrative, pointing to the token's supply structure as a potential cause. ZachXBT asserted that EDGE's circulating supply appeared to be controlled by a small...