title: Wintermute dumps ACT, KAVA, and DF tokens, causing prices to plummet by nearly 50%

On April 1st, the crypto community was caught off guard as a series of altcoins, including ACT, KAVA, DF… plummeted by nearly 50%.

On April 1, the crypto community was caught off guard as a series of altcoins, including ACT, KAVA, DF, and more, plummeted by nearly 50%. This sparked widespread speculation about a "mass dump," with many believing that market maker Wintermute had sold its entire holdings, triggering the sharp declines and sparking panic.

However, CEO Evgeny Gaevoy promptly responded, firmly denying the allegations and dismissing them as unfounded rumors.

A tough year for Wintermute

Earlier this year, as many altcoins hit new all-time lows (ATLs), Wintermute again came under scrutiny for allegedly triggering some of the strong market movements.

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…

— wishful cynic (@EvgenyGaevoy) February 3, 2025

As the market began to stabilize, Wintermute was once again 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, CEO Evgeny Gaevoy again denied any accusations of rug pulls or mass dumping, clarifying 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

The crypto community was left scratching their heads as they tried to piece together the events that led to the crash in several major altcoins on April 1.

The thinking went: If Wintermute had no intention of dumping tokens, then who was truly behind the crash?

Some began to speculate that Binance may have “indirectly” triggered the steep decline in several altcoins. At 2 PM (GMT) on April 1, the exchange announced changes to leverage and margin requirements for certain tokens. For open positions, Binance automatically applied the new terms.

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 sparked concern 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?

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.