A sharp collapse in the EDGE token has triggered a public brawl with online crypto sleuth ZachXBT accusing the exchange of devising the crash while edgeX pushing the blame to market manipulator for orchestrating the entire crash.

Just yesterday, the EDGE token took a huge plunge with a sudden drop from $1.20 to an intraday low of $0.3663, wiping out nearly 70% of its value before partially recovering. The token was still down around 45% over the past 24 hours at the time of publication.

ZachXBT Accuses EDGE Of Insider Trading

In its initial post on X, edgeX acknowledged the sudden collapse in its native token, saying

"We have observed a sudden and irregular price movement of the EDGE token and are actively investigating the cause."

This statement was quickly dismissed by online crypto sleuth ZachXBT who accused the exchange of manipulating manipulators" , pointing to how a small number of whales had controlled the majority of the token's supply.

Only 350 million EDGE tokens are currently circulating out of a maximum supply of 1 billion, meaning roughly 65% of the supply remains off the market.

Low-float tokens like this make it very easy for the exchange to hypothetically pull off an insider trading scheme as the token can experience an outsized volatility when liquidity is thin or when large holders enter or exit positions.

ZachXBT quickly challenged the explanation, arguing that EDGE's tokenomics may have created the conditions for a severe selloff regardless of any external activity. The investigator pointed to the token's low circulating supply and alleged concentration of ownership among a small group of insiders.

In response to ZachXBT's claims, the exchange responded while denying the allegations of insider trading claiming the manipulation was from the outside.

"What we have identified so far suggests deliberate attempts by certain external parties to manipulate the market price of EDGE"

ZachXBT immediately shot back, saying

"We investigated ourselves and did not find ourselves guilty even though we control nearly the entire supply."

ZachXBT also called on edgeX to disclose its market-making arrangements and counterparties to provide greater transparency around the crash.

Questions Over Supply and Liquidity

The controversy arrives as trading activity across decentralized exchanges has cooled significantly from the highs seen during the early 2025 market frenzy. According to DefiLlama data, aggregate DEX volume has fallen substantially from its peak levels, leaving thinner liquidity conditions across many onchain markets.

After hitting a spike close to $45 billion in early 2025, aggregate decentralized exchange volume has trended lower and largely stabilised in the $5 billion to $20 billion daily range through the first half of 2026, with a secondary peak around $30 billion in October 2025 before fading again.

While lower trading activity can amplify price swings, critics argue EDGE's crash raises broader questions about token launches with limited circulating supply, concentrated ownership and opaque market-making arrangements.

Despite the controversy, edgeX remains one of the largest decentralized trading platforms in the sector. DefiLlama ranks it as the 16th-largest DEX by 24-hour trading volume, with approximately $137 million in total value locked.

For now, the cause of the collapse remains disputed. What is clear is that the incident has reignited debate over whether token crashes are always the result of market manipulation—or whether some projects are structurally vulnerable long before the selling begins.