$ACT token faces a volatile price drop on Binance. Explore the ACT team's investigation and the community’s next steps as they chart a path forward.
The Fall in the Price of $ACT Token on Binance: A Look Into
It's well known that in the world of cryptocurrencies the prices can become unstable at any given moment. Yet if a sudden drop of 50% in the price of a token takes place what is to be done? It was obviously very hard for the $ACT holders, the people that believe in and hold $ACT, the token of the project The AI Prophecy, to accept an immediate fall in value on Binance. The team of ACT instantly took action by launching a thorough investigation to figure out the cause of the problem.
The article presents the necessary information that will show you in detail the incident, the steps of the project's team in response, and the potential impacts on the community of course, beyond it the investors in the crypto world.
What is the $ACT Token along with The AI Prophecy and their stories?
The founders were basically focusing on the people who did not have any knowledge or expertise in the field of AI when they started the project The AI Prophecy. A comprehensive blockchain project that aimed to bring AI to the masses and make it less scary for the majority of the population was their big idea by the name of AI Prophecy. The phenomenological shift from the consumer goods to the knowledge-based society occurred. This is where the need comes for a completely new project that reflects this shift in the form of technology and AI-driven DeFi that performs a context awareness function in the various phases of the AI-driven
autonomous organization
$ACT is a typical example of a fun meme altcoin with the slogan "technology and AI-driven DeFi" – technological innovation and limitations to decentralized AI are the areas where the project keeps its interest. On-platform ecosystem members can engage Ai chatbots in the discussion on AI ethics and co-development, and besides, inside the decentralized ecosystem, they can co-work. $ACT as the inaugural project not only gained the acceptance of the masses but also welcomed their participation, and they hit a cap of 11 digits-1 billion dollars. With Amp, the project's founder, announcing his departure right at the moment when he sold most of the coins, the project was in a complete community-operated phase. When the founder left, some community members felt uncertain, but others kept it strong, and the whole following situation was a clear indication of the community's fragments rebuilding and growth mode running still.
The Solana blockchain has been the birthplace of $ACT which was then fettered across different platforms like Binance and Crypto.com that made a skyhigh growth of 17 times from the 25th of January to the 8th of February. It eventually reached a market capitalization figure of as much as $422 million. Initially, due to the very visible concern of the project's community with the Co-Founder's departure, but the project managed to continue on the path of growth in very skilled leadership by the community.
What Caused the Fall of the $ACT Price?
On Binance, $ACT has lost as much as 50% of its value during one day which was a situation that required both immediate and community members' prompt action. The downward price movement was not that astonishing given the instance of a fresh bear market in the higher part of the altcoin section that obliterated coins with price downturns from 20% to almost half their previous values.
Various factors that can explain the sudden drop are:
- Market-Wide Sales: The phenomenon of the speed with which the "whale" candles turn into market players is unprecedented in the world of cryptocurrencies. Mostly the market is where they act first and mostly it will feel their dominance when the whales are trying to create an exit strategy.
- Liquidity Problems: A price can be moved tremendously if a certain coin is not as liquid as the other ones that are paired with it and the trading volume is very low.
- Whale Activity: If a major part of the total token value in the case of large sales is small compared to the total token value, the coin price can even be rocked by that. When the initial asset amount was sold by certain whales, it could have triggered the crash of said token in an unpredictable manner.
- Post-Launch Surge: As soon as the October 2024 release took place, $ACT kept gaining public attention all through the climb to the top and the creation of 1 700 percent gains, eventually becoming the most referred coin in the altcoin space. Shiba Inu and Dogecoin both have similar experiences like those of the memecoins, such as a rise in prices followed by a reduction, though the AI factor was a unique characteristic of $ACT.
- Amp, the project co-founder, offloaded his major share of the project to exit by selling the community. The token transfer was forced into a period of extreme fluctuation until the feeling that it got too much prevailed, now having the possibility to give back the token through a community that was stabilized, although the way forward was recognized as very difficult, a disagreement of trust, and other issues were mentioned.
Fluctuations of this kind can often be seen in cryptocurrencies where price changes of 100% in a few minutes are possible, but, in the case of $ACT, this latest example is something to take notice of.
How The Community Can Still be $ACT's Driving Force
Following the transfer of the founder the project has lost its centralized character and the whole power has been shifted to the community of $ACT. The token's holders — not the centralized governance—now drive its development.
This new formation is a mixed blessing. Decentralization leads to tech expansion and power shift. However, it also brings about a shift in the responsibilities, and the project's stability now fully depends on the community, in the meantime, the numerous qualifications of both the community and the success have been the protagonists of the affair. Constantly emphasizing engagement and making the social base of the community happy and satisfied are the very essence of the project.
$ACT’s win would be the consequence of nothing but their ability to cope with the circumstances beyond the project (e.g., market turbulence, or the founder’s quitting) and still serve the same project aim—to democratize AI knowledge—as they were.
The Investigation of the Price Drop
The ACT team has recently been performing some enlightening investigations on the subject of the drastic fall in price that has been alarming to both the investors and the hodlers and were interested to get an answer to the question: What are the key reasons for the price fall?
The following are the main issues which are being investigated by the team:
- Identifying Internal Factors
- Enumerating the monetary, contractual, and liquidity tools aspects through which leadership and operational teams containing some decision-making errors that resulted in losses could uncover issues like this up to a follow-through. Clarifying the two internal factors in tokenomics, smart contract, and liquidity systems that are the causes of the problem and at the same time showing the necessary evidence only, as well as critiques of the situations and processes where the leadership or the operative teams had rendered options that might have unintentionally led to the crash of the price.
- Enumeration of the three most sensitive spots in tokenomics, smart contracts, and liquidity systems, one of which is a weak point Dissecting the events and processes of decision making that the leadership or the operational teams have gone through, resulting in the price drop of the token.
- Enumeration of the three most vulnerable spots in tokenomics, smart contracts, and liquidity systems, of which only one is a weak spot Revelation of the events and practices that the leaders or the operation team were involved in which could actually have been the cause of the collapse.
- Enumerating the three major points of tokenomics, smart contracts, and liquidity systems, the misinterpretation of which would be of a certain inconvenience by the leader
- Disclosure of the major team decisions or operational team decisions which have negatively and hence the price has moved uncontrollably up the set direction.
- Unveiling Market Forces
- Suppose a person or a group of people have a large sum of goods and intends to liquidate it off causing the prices to tumble; in case she or he or they can regularly sell it in portions of it at a time, we can conclude that the revenue from the asset is proportional to the sales as more words like wash sale and front-running of the order come to light which confirm the suspicion of the market manipulation that was already mentioned. Furthermore, the examination of the whole market, including the behavior of Solana and Binance altcoins will make it clear if $ACT prices were affected or some of the other coins are also falling in the same direction.
- Discovering the scenarios of the market being scandalized, e.g., groups of major holders carry out the sales.
- As Solana-based or Binance-listed coins also seem to be in the same downtrend, if I also observe other altcoins in the market apart from $ACT, the situation seems to be clear that $ACT is one of the coins that are also downtrending.
In cryptocurrency, when the token holders are very open, and therefore, apart from that, they make some regular updates, which is then a good sign to be during the tough times.
The Implication for the Crypto Community
The fact that the price of the cryptocurrency changes quickly in the market is no longer a new thing but an occurrence that people are already familiar with, but to most of $ACT holders, this event of price instability is the innate dangers that people are exposed to when they choose this type of investment. There are certain aspects
- Volatility as the Usual State of Affairs
It is quite natural for altcoins, particularly, those that are closely related to meme tokens, to start undergoing massive price fluctuations due to speculative activities, high volumes of trade as well as the mood of the market in general which greatly influence the price.
- Power of Decentralized Communities
$ACT's sustainable existence will be subject to continued support from its followers. Their involvement in the decision-making process, which is fueled by the information they get, will be the most important factor in the coin's recovery.
- Transparency Builds Trust
The ACT team's approach to transparency is an example for other crypto projects encountering the same type of problems and it can act as a guide in their situation.
What Can $ACT Holders Do as a Reaction on the Part of the $ACT Community?
Suppose you are an $ACT holder and a person who has invested in it, or one of this community, there are some things related to the problem you can do. The following are some of the things you can do. Please, take a look at them.
- Stay Informed: Use the official ACT channels to monitor the investigation updates.
- Participate in the Discussion: Join the conversation by participating in community forums such as X (Twitter), and Discord to communicate your views and discuss your intentions with other participants.
- Evaluate Investment Decisions: Examine your present situation and ascertain if the current assets are suitable for your investment goals.
- Follow Market Conditions: Watch the cryptocurrency market developments and the various exchanges to be informed about the prospects of your portfolio being able to make investment decisions based on the information acquired.
How the Future Might Look for $ACT
One significant benefit of the huge price drop is that it allowed getting an in-depth view of the situation of $ACT and its community. No matter what has been the case for the decline of the price, i.e., a reaction to the market or specific actions executed, the team's dedication to the policy of open dialogue and joint problem-solving should be emphasized upon.
For the ones who are the target audience of this message, it is worth noting that, due to their holdings of $ACT or considering the possibility of buying it, it should be their solution to keep updated, knowledgeable and prepared for the future ahead. An ongoing communication by the ACT team may not only bring some more enthusiastic users but also awaken the project from the bottom to go back to the altcoin market.
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