False information implicating Changpeng Zhao in an alleged massive sale of ASTER tokens caused a real earthquake in the crypto markets. The token of the decentralized platform Aster fell sharply, bringing millions of dollars in liquidations in its wake. But what really happened?
In brief
- The ASTER token collapsed by 16.8% in a few hours, falling from $1.03 to $0.8566.
- An unfounded rumor claimed that CZ had sold 35 million ASTER tokens.
- The former boss of Binance quickly denied these allegations, which he described as “fake news”.
- Blockchain analysis revealed that this was simply an internal transfer between Binance wallets.
Fake news on CZ causes ASTER to plunge by 16%
Yesterday, October 30, the crypto market shook. ASTER, the native token of the eponymous decentralized exchange platform, plunged 16.8% in the space of a few hours.
The cause? A persistent rumor circulating on X claims that Changpeng Zhao “CZ” has liquidated no less than 35 million tokens. The news spread like wildfire, triggering a wave of panic selling among investors.
However, the reality was quite different. CZ himself quickly took to social media to call the allegations “fake news.”
The blockchain analysis service Lookonchain confirmed its statements: the transaction in question was only a simple internal transfer between Binance hot wallets. No massive sell-off had taken place. Despite this rapid denial, the damage was done.
At the height of the turmoil, ASTER was trading at $0.8566, a net loss of almost 17% compared to its level of $1.03 a few hours earlier. Liquidations reached $7.11 million for this token alone, part of a brutal market context where more than $884 million was liquidated in 24 hours.
ASTER's daily trading volume jumped 16% to $674.7 million, reflecting the intensity of the moves.
This extreme volatility illustrates the fragility of the crypto market in the face of misinformation. Aster, a decentralized platform backed by YZi Labs (the investment arm of CZ), operates on four major blockchains: BNB Chain, Solana, Ethereum and Arbitrum.
With a capitalization that places it 46th in the world and a circulating supply exceeding 2 billion tokens, ASTER remains a significant player in the DeFi ecosystem.
Technical signals point to an area of uncertainty
From a technical perspective, ASTER indicators remain mixed. The 14-period RSI is around 45.5, indicating weakening buying momentum without falling into oversold territory.
The MACD histogram shows a contraction of the negative bars, a sign of a slowdown in bearish pressure. However, no clear reversal signal is yet visible.
Traders are now monitoring two key levels. A move above $1 – $1.02 could confirm a lasting rebound and restore confidence. On the other hand, a failure to defend the $0.92 threshold could trigger a new wave of selling towards $0.85. Caution remains in order in this context of uncertainty.
This volatility fits into a broader context of tensions around CZ. The former Binance boss is currently facing defamation charges from US Senator Elizabeth Warren, who publicly accused him of corruption following his presidential pardon granted by Donald Trump.
CZ is also considering legal action if Warren does not withdraw her comments. These recurring controversies show the extent to which the crypto industry remains exposed to political and media games.
In short, the ASTER episode brutally reminds crypto investors of the imperative to cross-reference their sources before making any decision. In an ecosystem where information travels at lightning speed and fortunes can change in minutes, disinformation becomes a formidable weapon. The $7.11 million liquidated on ASTER could have been saved if more players had waited for official confirmation before giving in to panic.
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