edgeX Team Attributes Token Plunge to External Interference

ZachXBT accused the project of insider manipulation.

Representatives of the decentralized exchange edgeX attributed the approximately 67% drop in the native token EDGE’s value to “deliberate actions by an external party.”

We all know edgeX supply was being controlled by a few insiders with a low float.

If you care about transparency at all you will name the counterparties / MM agreements which lead to these events. pic.twitter.com/qn2LvNPg2H

— ZachXBT (@zachxbt) June 2, 2026

However, on-chain detective ZachXBT questioned the project’s explanation, pointing to potential insider manipulation. He urged the team to disclose details of agreements with market makers and counterparties whose actions might have triggered the dump.

On June 2, edgeX recorded a “sudden and irregular” price movement of the asset and initiated an investigation. According to CoinGecko, the EDGE price plummeted from $1.21 to $0.4 within a day. At the time of writing, the token is valued at $0.6576.

Project representatives emphasized that the protocol was not hacked. They blamed external participants for the incident, describing it as a “market integrity” issue.

We want to share an update on the irregular EDGE price movement and address any concerns about platform security directly.

The edgeX protocol were not compromised in any way. This was not a hack, exploit, or security breach.

What we have identified so far suggests deliberate… https://t.co/BV4rTz7aa8

— edgeX🦭 (@edgeX_exchange) June 2, 2026

The team promised to publish a detailed report after completing work with exchanges to identify those responsible.

Developers also clarified that the address of the perpetrator is an official smart contract of the spot platform used solely for user deposits and withdrawals.

The address: 0x7f861a7db997b4f6e5ef9954a3b5d5b29c463cb2 (https://t.co/aj00QsSwyR) is an official edgeX spot smart contract address used solely for user deposits and withdrawals on edgeX protocol. https://t.co/BV4rTz7aa8

— edgeX🦭 (@edgeX_exchange) June 2, 2026

ZachXBT criticized edgeX’s stance. According to him, the EDGE supply was controlled by a narrow group of insiders with an extremely low token float.

“We investigated ourselves and did not find ourselves guilty even though we control nearly the entire supply” pic.twitter.com/78l9tT01WT

— ZachXBT (@zachxbt) June 2, 2026

“We investigated ourselves and did not find ourselves guilty even though we control nearly the entire supply,” the researcher commented sarcastically.

The EDGE issuance is 1 billion tokens. Currently, 350 million coins (~35%) are in circulation. The distribution allocates 30% to early users, 25% to the core team, and 30% to the fund reserve.

edgeX ranks 17th among DEXs by daily trading volume, with a TVL of $134.54 million.

Back in May, the SUPERFORTUNE project team reported a security incident in which an attacker withdrew about $15 million.