On April 1st, the crypto community was caught off guard as a series of altcoins, including ACT, KAVA, DF… plummeted by nearly 50%.
What was the common thread among these tokens? All of these tokens were associated with the same market maker: Wintermute. This quickly led to speculation within the community that Wintermute had dumped its entire holdings, triggering sharp declines and widespread panic.
However, Wintermute’s CEO promptly responded, firmly denying the allegations and dismissing them as unfounded rumors.
A tough year for Wintermute
In early 2025 – as many altcoins hit new all-time lows (ATLs), Wintermute once again found itself under scrutiny for allegedly triggering sharp market volatility. According to data from Arkham, between January 27 and 28, Wintermute received over $100 million from Binance – a sum significant enough to shake the market during that period.
However, Evgeny Gaevoy, CEO of Wintermute, clarified that all transactions between Binance and Wintermute were solely for market-making and liquidity provision purposes.
What Wintermute does thread
It’s been exceptionally “fun” on twitter last few days with some accounts hitting new lows in terms of market structure understanding. I’ve written a few times in the past about what we do and how we prefer to do things, but maybe it’s a good time for…
— wishfulcynic (@EvgenyGaevoy) February 3, 2025
As the market began to stabilize, Wintermute once again became the scapegoat for a major crash involving nine tokens listed on Binance. According to data from Arkham, Wintermute withdrew liquidity from several AMMs, triggering price drops of more than 60% for tokens including ACT, DEXE, KAVA, DF, HIPPO, BANANAS31, LUMIA, TST, and QUICK.
Other altcoins were also affected, with some posting losses nearing 40%.
Multiple altcoins crashed. Source: X
However, echoing events from earlier in the year, CEO Evgeny Gaevoy denied any accusations of rug pulls or mass dumping. He clarified that Wintermute’s actions were purely related to arbitrage trading.
We’re simply engaging in AMM arbitrage. Honestly, we’re also wondering what’s going on in the market,” Gaevoy said.
In response to the backlash, Wintermute reportedly began buying back ACT and several of the affected tokens.
Binance: As the new market villain
Binance’s sudden policy shift sparks market turmoil
If Wintermute had no intention of dumping tokens, the community began to ask a more pressing question: Who was truly behind the crash?
Some speculated that Binance may have “indirectly” triggered the steep decline in several altcoins. At 2 PM (GMT) on April 1, the exchange abruptly announced changes to leverage and margin requirements for certain tokens. For open positions, Binance automatically applied the new terms.
Read more: There Will be More BNB Chain Token Listed on Binance
The move led to a wave of forced liquidations, pushing many traders into the red and sending altcoin prices into freefall. The impact wasn’t limited to derivatives markets; the sell-off quickly spilled over to spot markets, contributing to a broader market downturn.
The suddenness of the change raised concerns across the community. Many argued that Binance’s actions were too abrupt, leaving traders with little time to adjust. Some now wonder: could similar events unfold again?
Binance responds, but doubts remain
In response, Binance co-founder Yi He stated that the team is gathering evidence and will issue an official explanation soon. She also hinted that certain well-known figures in the crypto space may be intentionally damaging Binance’s reputation by spreading negative narratives.
Still, the issue remains unresolved. Many investors argue that Binance’s recent actions have had a disproportionately negative impact on the market, leaving positions worse off than just a day prior.
