EDGE coin price crashes 77%: External manipulation or internal script?

Null

Original author: Mahe, Foresight News

Around 4 a.m. on June 2, the native token EDGE of edgeX experienced a severe abnormal fluctuation. The price plummeted over 77% in a short period from around $1.14, hitting a low of $0.32, and has since rebounded to around $0.64, with a market cap of approximately $250 million.

edgeX official responded immediately, clearly ruling out hacker attacks or platform security vulnerabilities, and pointed the finger at "market manipulation deliberately carried out by specific external entities."

edgeX stated that its protocol was not compromised, and there were no hacker attacks or security flaws. The price movement was suspected to be caused by deliberate market manipulation by specific external entities, which is a market issue rather than a platform security problem. The team is actively investigating and cooperating with relevant exchanges and platforms to trace the responsible parties. The full investigation results will be announced after the investigation concludes.

edgeX emphasized that core contracts such as SpotVault are operating normally, with no suspicious activity detected, further focusing on external market behavior rather than the protocol itself.

On-chain investigator ZachXBT spoke after the incident, pointing out that edgeX's supply has been controlled by a small number of insiders for a long time, with low circulation, and called for the project to disclose market makers and trading counterparties to improve transparency.

After the event, many users linked this volatility directly to past project operations, expressing disappointment in the team's integrity. One community user bluntly said: "Nobody's talking about the sharp drop of EDGE anymore. The project team has little integrity, backtracking on promises, and I really have no desire to buy the dip."

Since its token TGE, edgeX's price rose from $0.7 to $1.5, and has since fluctuated around $1.4. The official team also launched a dedicated token website to demonstrate transparency. At the end of May this year, the protocol launched V2 and adjusted its tokenomics to use all profits for repurchasing EDGE. According to official data, about 36.54 million tokens have been repurchased, worth roughly $25 million.

Additional information shows that the protocol previously received investments from Circle Ventures and Amber Group, though the specific amounts were not disclosed.

Past airdrop controversy laid the groundwork for subsequent sharp declines

This incident cannot be separated from the background of the previous airdrop controversy involving edgeX. In April 2026, I detailed the entire process of community dissatisfaction caused by the TGE in an article titled "edgeX Airdrop Fiasco: A Carefully Designed Harvest?" The project promised the community a 25% token share, but only about 4% was actually distributed to ordinary traders, while approximately 14% (valued at about $94.6 million at the time) flowed into partner wallets. Arkham token flow maps showed at least 80 related addresses created in 2025, with consistent behavior patterns—small initial tests, large deposits later, and concentrated transfers after TGE, involving about $90 million worth of tokens, some of which flowed to exchanges.

The core controversy centered on the opaque points redemption mechanism. Users reported huge differences in exchange ratios for the same trading volume. Additionally, the estimated point value (market expectation before TGE of $30-40 per point or higher FDV) was over 80% higher than the actual received amount. Early contributors and NFT holders also experienced cases of "minimum distribution across the network." Community members flooded the official Twitter account with complaints, and the team temporarily shut down comments.

Later, edgeX announced that the disputed 14% share would be locked for one year and initiated a buyback, but refused the community's request to burn tokens on Ethereum.

These unresolved issues directly set the stage for the current volatility: token holdings are concentrated among a few addresses or related parties, making it easier for external entities to influence prices through large trades. Low liquidity is not accidental but a result of early distribution and lock-up arrangements. When abnormal selling pressure appears, the lack of sufficient depth buffers can easily trigger a chain reaction.

Structural risks and transparency tests

edgeX once gained a foothold in the field with fast trading speeds, low slippage, and perpetual contract innovations. After TGE, the project experienced a phase of growth, with trading volume and fee income frequently ranking among DeFi's top projects. According to the latest data from DefiLlama, the protocol's total fee income over the past 30 days was $10.7 million, and the perpetual DEX's trading volume over the same period reached $42.77B.

But from the airdrop distribution controversy to this price anomaly, this pattern of "low circulation + high control + opaque market making" has become a common "ring of harvest" tactic for new projects in recent years. While claiming to prioritize the community, the project's wallets have been quietly funneling tokens to related parties—merely a single-player game disguised with DeFi veneer.

External manipulation accusations are hard to confirm immediately, but traceable abnormal transfers on the blockchain are enough to raise community vigilance.

Ironically, just as the token faced a price plunge, its EDGE token price prediction quietly appeared on Polymarket.

The project team is busy trying to clear their name, while trapped retail investors are angrily protesting. Meanwhile, on Polymarket, some traders have already started betting on how much the price will rise or fall this year.