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HomeCrypto NewsMarketBinance-Inspired TST Token Dumps 69% in 15 Minutes

Binance-Inspired TST Token Dumps 69% in 15 Minutes

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Test token (TST) lost over 68% of its value in a few minutes amid open interest capitulation, sparking a liquidation frenzy for traders.

The Test token closed yesterday with a 12% gain as the broader crypto market pushed upward slightly. However, things went south quickly today, with the token dumping over 68% in 15 minutes across the market.

Unusual Activity Before Sharp Decline

Notably, top trader “DegenTrading” noticed building momentum on the TST token hours before this crash. He shared that someone opened a position worth $102 million on the token, evidenced in the spike in open interest and trading volume.

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Interestingly, this is almost twice the token’s OI, which stood at $65 million, up 55% in the past 24 hours. The trader also shared an increase in the funding rate of the TST token on Bybit, further buttressing the unusual activity.

He also warned of a massive price shift in either direction for TST and advised caution among market users. It didn’t take long before the token started a southbound price push. It reached a high of $0.04960 before dropping approximately 69% in 15 minutes to a low of $0.01547.

However, TST has rebounded considerably from the low, surging 77% to $0.02737 at the time of writing. The token’s market cap is currently down 32% to $25.9 million. Its OI has also dropped 26% to $26.40 million, while trading volume spiked 1,042% to $242.94 million.

Liquidation Frenzy for TST Traders

The price fluctuation did not spare open TST positions, especially longs. Data shows that $4.47 million worth of TST positions were liquidated in the past 12 hours, the third-largest in the crypto market. Only Ethereum ($15.25 million) and Bitcoin ($5.30 million) had more trading value wiped out in the timeframe.

Of the $4.47 million liquidated, 98% of them ($4.41 million) were long positions. This makes sense considering the direction of TST, as the token crashed in a few minutes. Meanwhile, the swift rebound affected $63,230 worth of short positions.

TST Liquidation
TST Liquidation

TST Token and Affiliation with Binance

Notably, the TST token launched on Binance for trading on February 9, after gaining traction due to its supposed affiliation with Binance. Notably, the BNB Chain team created the token during a test video explaining to users how to launch a token on the four.meme platform.

With claims that TST was a Binance-affiliated token growing among market users, the BNB Chain team quickly deleted the video. They also deleted the creator address’s private key, containing 0.13% of the TST token supply, ensuring they held none of it.

Binance’s Changpeng Zhao (CZ) further clarified that TST had no affiliation with Binance in a tweet, but the hype around the token continued. Its listing on Binance, which CZ criticized, further fueled traction, pushing the token to an all-time high of $0.52.

Meanwhile, the token is down over 90% from the ATH at its current price, as the buzz faded quickly. Remarkably, the reason behind the crash this morning remains unknown.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Author

Elendu Benedict
Elendu Benedict
Elendu Benedict is a refined cryptocurrency writer with over two years of experience in the field. With a thorough understanding of blockchain technology, cryptocurrencies, and market trends, as well as proficiency with ETFs, DeFi, and Web3, he specializes in writing engaging and educational articles on a variety of crypto-related subjects.

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