Cryptocurrency exchange Binance posted a list of “alpha watchlist tokens” to one of its Telegram channels on Wednesday, causing a surge in the mentioned tokens. However, it later clarified that the information was “false,” leading to the tokens relinquishing their newfound gains.

The post read: “Ready to explore early stage crypto projects?” before naming Wise Monkey (MONKY), Happy Cat (HAPPY), Rifampicin (RIF), Zircuit (ZRC), and ai16zeliza (ELIZA) as five projects with “strong fundamentals” and “active communities.”

Speculation and Confusion

Several traders speculated over whether the Telegram group was fake and attempting to lure people into a rug pull. However, it was later confirmed that the post was made by binance_web3_wallet_community, which is an official Binance channel.

Tokens Rise and Fall

MONKY rose by 38% after the post before dropping by 22% when it was deleted. One trader lost $102,000 in 12 minutes after buying 1.42M ELIZA at $0.1376 before panic selling at $0.09567, while the rest of the position was liquidated at $0.01157 when the false news was confirmed.

Binance’s Response

Binance did not immediately respond to CoinDesk’s request for comment.

Conclusion

The incident highlights the potential risks and volatility associated with trading in cryptocurrencies. Traders must be cautious when considering information shared on social media, and it is essential to verify the accuracy of such claims before making investment decisions.

FAQs

• What is an alpha watchlist token? An alpha watchlist token is a cryptocurrency that has strong fundamentals and an active community, indicating potential for growth and profitability.
• What happened in the incident? Binance posted a list of alpha watchlist tokens on its Telegram channel, causing a surge in the mentioned tokens. However, it later clarified that the information was false, leading to the tokens relinquishing their gains.
• How much did one trader lose? One trader lost $102,000 in 12 minutes after buying 1.42M ELIZA at $0.1376 before panic selling at $0.09567 and liquidating the rest of the position at $0.01157.
• What did Binance say about the incident? Binance did not immediately respond to CoinDesk’s request for comment.