ASTER collapses 16% after this explosive rumor about CZ

A false information involving Changpeng Zhao in an alleged massive sale of ASTER tokens triggered a real earthquake on the crypto markets. The token of the decentralized platform Aster plummeted sharply, dragging millions of dollars in liquidations behind it. But what really happened?

A fake news about CZ crashes ASTER by 16%

Yesterday, October 30, the crypto market trembled. ASTER, the native token of the decentralized exchange platform of the same name, plunged 16.8% within a few hours.

The cause? A persistent rumor circulating on X claiming that Changpeng Zhao “CZ” had liquidated no less than 35 million tokens. The information spread like wildfire, triggering a wave of panic selling among investors.

However, the reality was quite different. CZ himself quickly intervened on social media to label these allegations as “false information.”

The blockchain analysis service Lookonchain confirmed his remarks: the transaction in question was just a simple internal transfer between Binance hot wallets. No massive sale actually took place. Despite this quick denial, the damage was done.

At the height of the turmoil, ASTER was trading at $0.8566, a net loss of nearly 17% compared to its level of $1.03 a few hours earlier. The liquidations reached $7.11 million just for this token, in a brutal market context where more than $884 million were liquidated within 24 hours. 

ASTER’s daily trading volume jumped 16% to reach $674.7 million, reflecting the intensity of the moves.

This extreme volatility illustrates the fragility of the crypto market in the face of misinformation. Aster, a decentralized platform supported by YZi Labs (CZ’s investment branch), operates on four major blockchains: BNB Chain, Solana, Ethereum, and Arbitrum. 

With a market capitalization ranking it 46th worldwide and a circulating supply exceeding 2 billion tokens, ASTER remains a significant player in the DeFi ecosystem.

Technical signals point to an area of uncertainty

From a technical point of view, ASTER indicators remain mixed. The 14-period RSI stands around 45.5, indicating a weakening of buying momentum without tipping into oversold territory. 

The MACD histogram shows a contraction of the negative bars, a sign of a slowdown in bearish pressure. Nevertheless, no clear reversal signal is yet visible.

Traders are now watching two key levels. A rise above $1 – $1.02 could confirm a lasting rebound and restore confidence. Conversely, failure to defend the $0.92 threshold could trigger a new wave of selling towards $0.85. Caution remains warranted in this uncertain context.

This volatility occurs in a broader context of tensions around CZ. The former Binance boss is currently facing defamation accusations from US Senator Elizabeth Warren, who publicly accused him of corruption after his presidential pardon granted by Donald Trump. 

CZ is indeed considering legal action if Warren does not withdraw her statements. These recurring controversies show how much the crypto industry remains exposed to political and media games.

In sum, the ASTER episode brutally reminds crypto investors of the imperative to cross-check their sources before making any decision. In an ecosystem where information circulates at lightning speed and fortunes can flip in minutes, misinformation becomes a formidable weapon. The $7.11 million liquidated on ASTER could have been avoided if more actors had waited for official confirmation before giving in to panic.