- Over $1.08 billion in crypto liquidations in 24 hours, with ETH, XRP, ADA, and SOL among the hardest-hit assets.
- The Crypto Strategic Reserve proposal sparked controversy, with accusations of insider dumping and market manipulation.
- Coinglass calls for Binance transparency, reigniting debates on centralized exchange accountability.
The cryptocurrency market faced a large-scale sell-off, with over $1.08 billion in leveraged positions liquidated in the past 24 hours.
Traders betting on price increases lost nearly $498 million, while those in short positions accounted for $583.93 million. Ethereum (ETH), XRP, Cardano (ADA), and Solana (SOL) saw significant liquidations, rattling many crypto investors.
Major Liquidations Across Top Cryptocurrencies
Data shows Bitcoin (BTC) led the liquidation wave with $415.11 million wiped out, followed by Ethereum at $190.82 million. XRP posted $96.50 million in liquidations, ADA $86.91 million, while SOL trailed closely with $86.76 million.
Notably, Binance accounted for the largest single liquidation event, where a BTC/USDT trade valued at $15.49 million was erased.
Crypto Strategic Reserve Sparks Debate
This volatile trading period has also sparked discussion about the proposed U.S. “Crypto Strategic Reserve.” One crypto observer criticized the selection of XRP, ADA, and SOL for the reserve, arguing that these tokens lack real-world utility.
Accusations surfaced, claiming XRP is mainly for insider selling, ADA’s founder might have connections to controversial individuals, and SOL has allowed pump-and-dump schemes in the memecoin space.
Related: FTX/Alameda Unstakes $432M in SOL Sending Tokens to Exchanges, Adds to SOL Price Pressure
Adding to the tension, crypto analyst Marty Party alleged that Binance offloaded its SOL and ETH holdings to settle its Department of Justice (DOJ) fines while making money from futures liquidations.
Even Bybit reportedly liquidated markets to recover lost ETH, only to buy it from retail investors at discounted prices. Such actions can reignite distrust toward centralized exchanges and spark calls for greater transparency.
Calls for Transparency Grow Louder
The liquidation data issue continues to intensify, with Coinglass urging Binance to publicly disclose all liquidation metrics. Binance restricted liquidation data access in mid-2021, citing potential risks to its perpetual contract business.
Previously, former CEO Changpeng Zhao (CZ) had voiced concerns that too much transparency could attract regulatory attention and media-driven market manipulation. However, critics argue that data transparency is a fundamental blockchain principle that should not be compromised.
Related: SEC Goes All In on Crypto Task Force: Here’s the Complete List of Key Members
Despite skepticism, some traders remain optimistic. Supporters see the current market dip as a natural pause before a bullish rebound.
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