Panic Over False CZ Rumor Sends ASTER Token Crashing 16% — Here’s What Really Happened

A single rumor sent shockwaves through the crypto market this week. On October 30, ASTER — the native token of decentralized platform Aster — nosedived nearly 17% in just hours after false claims surfaced online that Binance founder Changpeng “CZ” Zhao had dumped 35 million ASTER tokens.

The unverified post spread like wildfire across X, sparking a chain reaction of panic selling and wiping out millions in leveraged positions. But the “massive sell-off” never happened.

Blockchain analysis firm Lookonchain later confirmed that the alleged $35 million transaction was merely an internal wallet transfer between Binance’s hot wallets. CZ himself quickly stepped in, dismissing the viral claims as “false information.” But the damage was already done — and ASTER’s price had already tumbled from $1.03 to $0.8566, erasing nearly a fifth of its market value.

The fallout was brutal. More than $7.1 million in ASTER positions were liquidated, contributing to over $884 million in total crypto market liquidations within 24 hours. During the panic, the trading volume for ASTER ballooned more than 16% to reach $674.7 million, reflecting the frenzy that misinformation can ignite in today’s ultra-reactive markets.

ASTER, supported by YZi Labs, remains a major player in decentralized finance, ranking 46th globally with over 2 billion tokens in circulation. Operating across BNB Chain, Solana, Ethereum, and Arbitrum, it continues to attract strong community interest — though episodes like this highlight how fragile sentiment in DeFi can be.

Technically, ASTER’s indicators now paint a mixed picture. Its 14-period RSI hovers around 45.5, signaling fading buying pressure without crossing into oversold territory, while the MACD histogram suggests a slowing bearish trend. Traders are eyeing $1–$1.02 as a key resistance range for a potential rebound, with $0.92 serving as the critical support level to watch.

This market chaos comes amid a turbulent period for CZ himself. The former Binance CEO, recently pardoned by Donald Trump, is preparing to take U.S Senator Elizabeth Warren to court after Warren accused him of pleading guilty to money laundering.

However, CZ has insisted that he had pleaded guilty to failing to maintain adequate anti-money laundering control at Binance, not money laundering. CZ also warned Senator Warren that he would lodge a lawsuit against Warren if she doesn't retract her accusations.

The ASTER incident proves just how quickly a stray headline or false post involving a major figure can move billions in the crypto economy.

In the end, the ASTER flash crash is a sobering reminder of how fragile trust — and truth — can be in the crypto world. A few keystrokes of misinformation were enough to erase millions in value, unsettle traders, and move markets worldwide. If there’s one takeaway, it’s this: in crypto, always verify before you amplify. Hype can make you money, but misinformation can cost you everything.