Altcoin (ALT) Price Crash Scandal: What Caused the Sudden Drop?

Jakarta, Pintu News – The crypto market has been shocked once again as the price of Altcoin plummeted by 54.72%, bottoming out at $0.004535 within 24 hours. This comes after the Altcoin experienced a flash crash that wiped out 97% of its market value, leaving many investors with huge losses.

Check out the full analysis in this article!

Main Causes of Collapse

According to analysis from Crypto Beast posted on X, this Altcoin (ALT) price collapse was triggered by a cleverly executed dump operation. A group of sniper wallets is said to have capitalized on the low liquidity of ALT to carry out massive sales in a coordinated manner.

This led to a surge in trading volume to over $7.1 million, yet the market capitalization immediately went into freefall to just $4 million. This operation not only shocked the market for its speed, but also for the amount of losses it caused.

The wallets managed to raise 83.3 Solanas , which is 3% of the total ALT supply, buying at low prices and selling at the peak of retail interest. Eventually, they managed to sell over $2.2 million worth of ALT, which directly caused the price of ALT to plummet.

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Sniper Strategy

These snipers started by making small trades in various tokens to avoid detection. On July 7, at around 10:30 UTC, they began to attack ALT. In just 20 minutes, they managed to secure most of the token supply.

Since ALT has low liquidity, selling even 0.5% of the total supply is enough to make prices plummet. They dumped 3% of the supply, which was enough to destroy the market price. When ALT prices crashed, panic hit the market.

Some early investors managed to make 5-10 times the profit by copying the actions of the sellers, but most investors were stuck with tokens that were worth almost nothing. These profits were eventually pooled into a single wallet, which raised even more suspicion.

Read also: What is Crypto Bubble?

Controversy and Impact

Analysis from Stygian accused Crypto Beast of promoting ALT, stating that the same entity had orchestrated previous ALPHA scams. Skynet Insights supported these allegations, linking Crypto Beast to several rug pulls that resulted in losses of up to $20 million.

The deletion of Crypto Beast’s account immediately after the ALT crash raised a lot of concerns, although he came back with an apology, many did not believe him.

This incident raised concerns about the safety of meme coins and projects backed by influencers. Many have begun to question the reliability and safety of investing in crypto assets promoted by public figures.

Conclusion

The Altcoin (ALT) price collapse is an important lesson for crypto investors about liquidity risk and market manipulation. It shows how important it is to do thorough research before investing, especially in assets that have low liquidity and are backed by influencers.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Crypto Times. Altcoin ALT Price Dump: Here’s What Sent It Crashing Down. Accessed on July 16, 2025
• Featured Image: Generated by AI