Decentralized exchange EdgeX has blamed an unnamed 'external party' for the more than 40% collapse in its EDGE token, calling it deliberate market manipulation. But onchain investigator ZachXBT dismissed that claim, alleging the project's supply was controlled by a small group of insiders.
Data from CoinMarketCap shows EDGE plunged from roughly $1.20 to an intra-day low of $0.3663 on Tuesday, a drop of about 70%. The token is currently trading at $0.6474, down 45% over the past day.
The EdgeX team acknowledged the sudden collapse, saying they observed 'a sudden and irregular price movement' and were actively investigating.
ZachXBT responded on X, claiming EdgeX's supply was controlled by a few insiders operating with a low float-making the token inherently vulnerable. He also demanded the project publicly disclose its counterparties and market-maker agreements.
Only 350 million EDGE tokens are currently in circulation out of a maximum supply of 1 billion. A low circulating float can make a token more susceptible to sharp price moves, especially if liquidity is concentrated or large holders sell into thin order books.
![]https://s3-images.ctmedia.io/media/content/edgexxwe.png)
In a follow-up statement, EdgeX said the platform was not hacked, calling the crash a market integrity issue. ZachXBT responded sarcastically: 'We investigated ourselves and did not find ourselves guilty even though we control nearly the entire supply.'
EdgeX is the 16th largest DEX by trade volume over the past day, with a total value locked of $137 million.
Broader DEX trading volume has pulled back sharply from peak levels. After hitting nearly $45 billion in early 2025, aggregate decentralized exchange volume has largely stabilized between $5 billion and $20 billion daily through the first half of 2026.
![]https://s3-images.ctmedia.io/media/content/all-dexs-dex-volume2026-06-02.png)
The cooling activity reflects a broader retreat in onchain trading appetite, leaving DEX markets thinner and more vulnerable to outsized price impacts.