Key Highlights
- TAC token crashed nearly 90% within 15 minutes after launching on Binance Alpha, dropping from around $0.06 to $0.005.
- The selloff pushed TAC’s trading volume to about $76.57 million within 24 hours as traders rushed to sell.
- The cause of the crash remains unclear, but heavy selling after the Binance Alpha airdrop may have contributed to the price drop.
TAC Protocol’s token suffered one of the steepest drops among newly launched crypto assets, falling nearly 90% within just 15 minutes of trading on Binance Alpha.
This crash happened today after TAC started trading on Binance Alpha, Binance’s platform for early-stage crypto projects. The token dropped from around $0.06 to about $0.005 as strong selling pressure pushed the price down quickly.
At the time of reporting, neither TAC Protocol nor Binance had given an official reason for the sudden fall, and there was no evidence that the crash was caused by a hack or technical problem.
The listing rally fades fast
Before the crash, the token briefly attracted some investors after being listed on the trading platform, giving the project exposure to a large number of crypto users. At some point, the token went as high as over 25%.
However, the early momentum faded quickly as traders rushed to sell after taking profits. At press time, trading activity has surged by 1266% as the selloff increases, pushing the volume to around $76.57 million worth of TAC changing hands during the first 24 hours.
What triggered the selloff?
One possible reason behind the sudden fall was the TAC airdrop on Binance Alpha. Eligible users with enough Alpha points received 1,875 TAC tokens for free. Since these users did not buy the tokens with their own money, some holders may have decided to sell immediately after trading opened. When many people sell at the same time, especially in a market with limited liquidity, prices can fall rapidly.
However, TAC and Binance have not confirmed that the airdrop was the direct cause of the crash.
Behind TAC’s big launch
Despite its difficult start, TAC Protocol entered the market with backing from several crypto investment firms. The project raised about $11.5 million before launch from investors such as TON Ventures, Hack VC, Animoca Ventures, Symbolic Capital, Primitive, and Spartan Group. In 2024, TAC also secured a $6.5 million seed funding round led by Hack VC and Symbolic Capital to help develop its technology.
Meanwhile, TAC Protocol is also building an Ethereum Virtual Machine (EVM)-compatible Layer 1 blockchain that aims to connect Ethereum applications with Telegram’s TON ecosystem. The project uses Cosmos SDK technology and includes a TON Adapter, which helps Ethereum-based applications work with Telegram. Through this system, developers can create decentralized applications that users can access directly through Telegram Mini Apps.
Why new tokens stay risky
The sharp decline highlights the risks associated with trading newly launched crypto tokens. Even projects backed by prominent investors can experience extreme price volatility shortly after entering the market.
As of publication, there has been no confirmed explanation about what caused the sudden collapse.
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