EDGE token crashes 70% as ZachXBT challenges EdgeX manipulation claims

Blockchain investigator ZachXBT publicly challenged EdgeX's claim that external manipulation caused its EDGE token to lose 70% of its value on June 1, pointing to concentrated insider-controlled supply as a more likely explanation.

EDGE fell from $1.19 to as low as $0.38 on major exchanges including Binance and OKX during the June 1 session, erasing about $0.82 from its value at the trough, according to CoinMarketCap data. The token recovered to $0.67 by June 2, with market capitalization at $235 million and 24-hour trading volume reaching $155 million.

"We all know edgeX supply was being controlled by a few insiders with a low float," ZachXBT said in a post on X. "If you care about transparency at all you will name the counterparties and market maker agreements which lead to these events." The blockchain investigator has previously documented similar patterns in the RAVE, SIREN, and M token collapses, where insider-controlled supply preceded sharp price declines.

The crash triggered $6.28 million in total liquidations across derivatives markets, with long positions accounting for $4.83 million of that total, per Coinglass data. Short positions contributed $1.45 million. Trading volume surged more than 1,600% from the prior day to $138 million, signaling climactic selling rather than normal market activity.

EdgeX's Response and the Liquidity Question

The edgeX team released two statements within hours of the crash. The first acknowledged "sudden and irregular price movement" and promised an investigation. The second ruled out any hack, exploit, or security breach, attributing the sell-off to "deliberate attempts by certain external party to manipulate the market price of EDGE." The project said it is working with exchanges including Binance and OKX to identify responsible parties.

On-chain analysts flagged suspicious patterns around the time of the crash. Approximately $1.6 million in liquidity was withdrawn from edgeX's SpotVault alongside coordinated outflows across Bybit, OKX, Bitget, and Gate.io, according to independent analyst givenoxbt. The pattern matches what happens when key liquidity providers simultaneously withdraw buy-side support from a low-float token, causing bids to evaporate and stop-losses to cascade.

EDGE has a total supply of 1 billion tokens with only 350 million in circulation, giving it a thin public float. The fully diluted valuation of about $616 million is nearly three times the current market cap, meaning a large majority of tokens remain locked or held by early participants. The token had hit an all-time high of $1.54 just 11 days before the crash, on May 22.

A Pattern ZachXBT Has Documented Before

The EdgeX incident follows a template the investigator has tracked across multiple tokens since early 2026. In the RAVE collapse in April, addresses linked to initial token distribution controlled about 95% of supply before the token crashed more than 95% from its peak. ZachXBT's investigation connected RAVE to a playbook he said operated across RIVER, SIREN, MYX, SKYAI, and other tokens.

The edgeX community has also pushed back against the project's explanation. The initial June 1 announcement received more than 130 comments on X, with many users expressing disbelief and some accusing the team of foul play. The project has not yet named the external participants it blames, disclosed trading data, or published the promised incident report.

EdgeX has promised a comprehensive update once its investigation concludes. Whether the project names its counterparties and provides verifiable on-chain evidence will likely determine if it can preserve community trust. A sustained break below $0.60 could open the door to a retest of the crash low near $0.32, given the thin order books.

This article is for informational purposes only and does not constitute investment advice.