- SAHARA plunged over 60% in a sharp sell-off, erasing more than $100 million in market value.
- Liquidations and stop-loss triggers accelerated the decline as traders rushed to exit positions.
- Sahara AI says no security breach or insider selling occurred and is investigating the crash.
Sahara AI’s native token, SAHARA, suffered a dramatic crash. The token plunged more than 60% in a short period, wiping out over $100 million in market value as panic selling swept through the market.
Data cited by market observers showed SAHARA fell from about $0.03965 to a new all-time low of $0.01333 within 24 hours. At press time, the coin is trading at $0.01781 and has a trading volume of $348.75M, an increase of around 250%.
Cascade of Liquidations
The decline was notable because it happened while Bitcoin moved higher. During the same period, Bitcoin gained roughly 0.70%, suggesting the sell-off was largely specific to SAHARA rather than part of a broader crypto market downturn.
Notably, the crash was mainly driven by a cascade of liquidations. As the price began falling, stop-loss orders and forced liquidations added further selling pressure. This created a feedback loop that pushed the token even lower.
The sell-off also triggered widespread speculation across crypto social media, with traders searching for the cause of the sudden drop.
Sahara AI Launches Internal Review
In response to the volatility, Sahara AI said it was actively monitoring the situation and had launched an internal investigation. The team stated that it had not found any security vulnerabilities in either the token contract or the project’s products.
Sahara AI added that it would share more information once its investigation produced confirmed findings.
Team Rejects Insider Selling Claims
As the token fell, some community members pointed to large on-chain transfers as a possible reason for the crash.
However, Sahara AI rejected those claims. The project said team and investor allocations remain untouched on-chain and that no insider tokens have been sold or moved.
According to the company, the transfers that attracted attention were part of a pre-scheduled liquidity operation tied to its recently launched cross-chain bridge.
Sahara AI said 600 million SAHARA tokens were transferred to a Chainlink CCIP bridge contract to support bridge liquidity. Another 150 million SAHARA tokens are scheduled to be added later.
The company stressed that these transfers were planned in advance and were unrelated to the market sell-off. It also said the bridge continues to operate as intended.
Major Dip After Series A Funding
Notably, the volatility comes amid Sahara AI’s backing from several major crypto investors. The project raised $43 million in a Series A funding round led by Binance Labs, with participation from Pantera Capital and Polychain Capital.
SAHARA was also listed on Binance’s spot market in June 2025, increasing its visibility among crypto traders.
Nonetheless, market participants are awaiting updates as the company works to determine what triggered one of the token’s steepest declines since launch.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
