EDGE token crashes as ZachXBT questions insider control

EDGE fell sharply on June 2 after edgeX blamed unusual market activity on an unnamed outside party, while onchain investigator ZachXBT questioned the token’s supply control.

EDGE dropped from about $1.20 to an intraday low near $0.36, according to market data. CoinGecko later showed the token trading near $0.64, down about 46% over 24 hours.

The fall came as trading volume rose sharply. CoinGecko data showed more than $63 million in 24-hour EDGE volume, while 350 million tokens are currently tradable out of a 1 billion maximum supply.

edgeX denies hack after token collapse

The edgeX team said it had seen “a sudden and irregular price movement” in EDGE and was investigating the cause. The team later said the platform had not suffered a hack, exploit or security breach.

In a follow-up statement, edgeX said early findings pointed to “deliberate attempts by certain external party to manipulate the market price of EDGE.” The team described the event as a market integrity issue, not a protocol security failure.

ZachXBT questions supply control

ZachXBT rejected the team’s explanation and said EDGE had a low circulating float controlled by a small group of insiders. He also called for edgeX to disclose counterparties and market-maker agreements linked to the token’s trading structure.

He later mocked the project’s internal review, writing “We investigated ourselves and did not find ourselves guilty even though we control nearly the entire supply.” His comments placed attention on EDGE distribution, liquidity and market-making deals.

Low float adds pressure on DEX tokens

A low circulating supply can make a token more sensitive to large trades. When liquidity is thin, heavy selling can push prices down quickly, even if a project’s core platform keeps running.

DefiLlama data shows edgeX remains an active derivatives platform, with about $134.8 million in total value locked and more than $2.17 billion in 24-hour perpetual trading volume.

The latest drop adds to earlier concerns around EDGE transparency. Earlier reporting noted that edgeX launched its token with 25% of the airdrop unlocked while community users raised questions about distribution and closed comments on X.

The token crash also comes as decentralized exchange activity has cooled from earlier peak levels. Lower market activity can leave smaller or newer tokens more exposed to sharp price moves.

edgeX said it is still investigating the event and asked users to follow only official updates. The main unanswered issues remain who sold into the market, how much supply insiders controlled, and whether market-maker terms played any role in the crash.