The cryptocurrency world was shaken recently by a controversy involving Binance, one of the largest and most influential exchanges in the industry. The incident, which occurred around April 1, caused significant market volatility and massive liquidations of Binance-listed tokens. As a result, the hashtag #BoycottBinance began trending on social media platforms, with traders and investors expressing their frustration. But what exactly happened, and why is this incident causing such an uproar?

Binance’s April Fool’s Incident

The drama began with what many have described as an “April Fool’s” stunt, which led to an unexpected and extreme market reaction. Over the course of 24 hours, several Binance-listed tokens saw their prices crash by more than 50%. Among the most notable casualties was the token Act I The AI Prophecy (ACT), which plunged by more than 63%, trading as low as $0.06987.

The panic wasn’t limited to ACT alone. Other tokens such as DEXE, KAVA, HIPPO, TST, LUMIA, and QUICK also saw significant drops in value. The cause of the market carnage? On-chain data revealed that Binance had quietly reduced leverage limits on these tokens, without any prior warning to traders. This triggered automatic liquidations, particularly for market makers like Wintermute, who held positions beyond the newly adjusted limits.

The Backlash and Calls for #BoycottBinance

As the scale of the liquidations became clear, the cryptocurrency community began to react with outrage. Traders and investors felt blindsided by the sudden changes in leverage and accused Binance of putting profits over the well-being of its users. The lack of communication surrounding the decision only added fuel to the fire. With no clear explanation from Binance at first, many took to social media to voice their dissatisfaction, leading to the trending hashtag #BoycottBinance.

The hashtag quickly spread across platforms like Twitter, with frustrated investors demanding that Binance take accountability for the market disruptions. The tone was one of anger and confusion, as many wondered how such a significant event could have occurred without proper communication or warning.

Responses from Wintermute and Binance

In response to the outcry, key players involved in the incident have provided some clarification. Wintermute, one of the major market makers affected by the liquidations, explained that the selloff was not a deliberate strategy but rather an arbitrage opportunity that emerged within an Automated Market Maker (AMM) pool. The sudden liquidation was a result of the reduced leverage limits, which forced Wintermute to liquidate its holdings in line with the new rules.

Binance cofounder Yi He also addressed the situation, stating that the exchange was conducting a full investigation into the incident. Yi confirmed that Binance was preparing a detailed report but hinted that other factors or external players may have been involved, adding to the complexity of the situation. While the investigation is ongoing, the lack of immediate transparency has left many users frustrated and skeptical.

Criticism Over Binance’s Priorities

Beyond the financial losses, a key point of criticism has been Binance’s focus on its own profits rather than supporting blockchain projects with real utility. Some in the community have expressed concerns that Binance prioritizes trading volume and quick profits over the long-term success of blockchain ecosystems.

The damage to Binance’s reputation has already been significant. The trust and confidence of users have been undermined, and the exchange is now facing scrutiny for its role in exacerbating market volatility. While some may see the incident as an unfortunate mistake, others view it as a sign of deeper issues with Binance’s operations.

What’s Next for Binance and XRP?

As Binance works to address the situation and provide more clarity, the cryptocurrency community is left grappling with the aftermath. For now, many investors are still recovering from the financial blows they sustained during the liquidation events. Whether Binance can regain the trust of its users will depend on how transparently it handles the fallout and whether it makes any structural changes to prevent similar incidents in the future.

With #BoycottBinance still trending, the exchange faces a challenging road ahead in restoring its reputation and stabilizing its relationship with the crypto community. Only time will tell how this scandal impacts Binance’s standing in the market and whether the anger surrounding it will continue to grow.