Digital

STMX Token Experiences Volatile Price Movements, Sparking Market Manipulation Speculations

Picture Source: BeInCrypto

The cryptocurrency market is no stranger to extreme price fluctuations, but recent developments in the STMX token have raised eyebrows among market watchers. The native token of StormX, a platform offering crypto cashback for online shopping, experienced an unprecedented surge and subsequent sharp decline, leading to speculations of potential market manipulation.

Unusual Price Movements:

Over the past 24 hours, the STMX token witnessed a staggering surge in its price, peaking at $0.015 before plummeting by approximately 45% to $0.0081. Although the token has since recovered slightly to $0.0089, it has still recorded an impressive 104% gain in the last seven days. The suddenness and severity of these price fluctuations have prompted concerns of foul play in the market.

Market Manipulation Suspicions:

The abrupt nature of the price movements has led some market watchers to suspect possible market manipulation. However, as of now, there is no concrete evidence to substantiate these claims. One factor adding to the skepticism is the dominance of the South Korean exchange UpBit, which reportedly accounts for a substantial 72% of the token’s trading volume, amounting to a staggering $495 million.

Liquidations Hit Derivatives Traders:

The volatile price swings of STMX have had significant repercussions for derivatives traders. In the last 24 hours, a total of $3.78 million worth of STMX positions were liquidated. The liquidations affected both bears and bulls, with $2.77 million in short liquidations and $1.01 million in long liquidations. The magnitude of these liquidations has highlighted the risks and volatility associated with trading in the cryptocurrency market.

Binance’s Response:

Binance, one of the prominent exchanges facilitating STMX trading, acknowledged the situation and released an official statement. The exchange’s customer service team is currently investigating the incident and promised to provide further information as it becomes available. Those affected by the liquidations were directed to utilize the online customer service and fill out an appeal form for assistance.

Changes in STMX Futures Contract:

In response to the recent price turbulence, Binance Futures announced an update to the leverage and margin tiers of the USDⓈ-M STMXUSDT Perpetual Contract. The changes, set to take effect on July 23, 2023, at 07:15 (UTC), include an increase in the funding rate settlement frequency from every eight hours to every two hours. Additionally, the capped funding rate multiplier will be raised from 0.75 to 1. Traders were advised to adjust their positions and leverage accordingly to mitigate potential risks arising from the adjustments.

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Conclusion:

The STMX token’s recent rollercoaster ride in the cryptocurrency market has sparked speculation of market manipulation and drawn attention to the potential risks faced by derivatives traders. As the situation continues to unfold, it is essential for market participants to exercise caution, stay informed, and be prepared for further updates from the exchanges involved. With the crypto market’s inherent volatility, investors are reminded to conduct thorough research and exercise prudence while navigating the evolving landscape of digital assets.

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