TL;DR:
- ZachXBT accused edgeX of inside manipulation after the collapse of the EDGE token, which misplaced 74% of its worth from its all-time excessive.
- The token fell from $1.54 to a low of $0.40 on June 1, producing $6.2 million in liquidations and affecting 3,840 merchants.
- edgeX attributed the crash to “exterior manipulation,” however the investigator questioned that the staff controls almost the whole circulating provide.
ZachXBT, the well-known on-chain investigator, publicly attacked the edgeX staff after the EDGE token crashed to an all-time low of $0.40 on June 1, lower than two weeks after reaching its peak of $1.54.
The drop implied a lack of 51% of its worth in a single day and resulted in $6.2 million in liquidations recorded throughout main platforms, with lengthy positions totaling $4.84 million concentrated totally on Binance, Bybit, and OKX.
Everyone knows edgeX provide was being managed by a number of insiders with a low float.
For those who care about transparency in any respect you’ll title the counterparties / MM agreements which result in these occasions. pic.twitter.com/qn2LvNPg2H
— ZachXBT (@zachxbt) June 2, 2026
ZachXBT Calls for Actual Transparency
edgeX, the decentralized perpetual futures platform that points the token, revealed an announcement on X hours after the collapse acknowledging “a sudden and irregular value motion.” In a second assertion, the challenge dominated out any hack or vulnerability within the protocol and pointed to exterior actors, claiming to have recognized “deliberate makes an attempt by sure events to manipulate the market value of EDGE.” The platform promised a extra detailed replace as soon as inside investigations had been concluded.
Pricey edgeX Neighborhood,
We need to be clear with you: we now have noticed a sudden and irregular value motion of the EDGE token and are actively investigating the trigger.
Our staff is working urgently to grasp what has occurred. We are going to share our updates as quickly as we…
— edgeX🦭 (@edgeX_exchange) June 1, 2026
That clarification, nevertheless, didn’t persuade everybody. ZachXBT identified that EDGE’s provide seemed to be managed by a small group of actors, with a really low circulating float, and challenged the staff to disclose their agreements with counterparties and market makers in the event that they had been genuinely searching for transparency. His sharpest criticism got here as a direct paraphrase: “We investigated ourselves and located no wrongdoing, regardless that we management almost the whole provide.”
We need to share an replace on the irregular EDGE value motion and handle any issues about platform safety instantly.
The edgeX protocol weren’t compromised in any method. This was not a hack, exploit, or safety breach.
What we now have recognized thus far suggests deliberate… https://t.co/BV4rTz7aa8
— edgeX🦭 (@edgeX_exchange) June 2, 2026
A Tough Quarter for DeFi Safety
The token collapse occurred throughout a posh interval, marked by a sequence of safety incidents that shook the ecosystem over current months. Among the many most notable, the exploit on DxSale drained greater than 1,400 liquidity swimming pools on BNB Chain for a complete of $7.3 million. An attacker additionally withdrew roughly $11 million from the Verus bridge, whereas liquidity supplier TrustedVolumes recorded losses of almost $6 million.
In response to CoinGlass knowledge, EDGE’s value volatility reached 74.77% on the day of the collapse. The token is at present buying and selling at round $0.652, in response to CoinMarketCap.
