The STO token, an altcoin trading on the HTX exchange, saw its price collapse by more than 60% in a frantic 20-minute trading window, wiping out a significant portion of its earlier gains. The token's price fell to $0.69531, according to data from the exchange.
The sudden and severe price movement was captured by several market data providers tracking HTX's order book. "The extreme volatility and price action are indicative of the high-risk nature of low-liquidity tokens," said a market analyst.
Before the crash, STO had been up by over 250% on the day. The rapid sell-off brought the intraday gain down to 98.31%. The token's price had surged from approximately $0.35 to a high of over $1.70 before the sharp reversal.
The incident is likely to fuel further selling pressure from holders looking to exit their positions and could prompt HTX to investigate the trading activity for signs of market manipulation or technical issues. This highlights the inherent risks associated with trading lesser-known altcoins on centralized exchanges.
This article is for informational purposes only and does not constitute investment advice.
