CORE Token Drops 50% Overnight-Is This the End?

Why CORE Token Crashed 50% in 24 Hours?

The price of CORE, the token used by Core DAO, fell sharply, dropping around 50% in just 24 hours. Core DAO explained that a sudden wave of large sell orders caused the price drop.

Significant drops in asset prices created strong selling pressure that quickly affected the lending market. This led to a fast series of forced sales on Colend, a lending platform connected to the Core network.

How the Liquidation Cascade Unfolded

The team said that when prices began to decrease, highly leveraged trades on Colend hit their minimum collateral limits. This triggered automatic sell-offs, which caused prices to fall even faster.

As traders closed out their positions, it led to more selling, which then drove prices even lower – creating a self-reinforcing cycle. The system worked as intended, so the price drop wasn’t due to a bug or technical issue, but rather to how the market reacted.

The team reports that most of these issues have been resolved, with only a small amount of risk remaining.

Team Response and Stabilization Efforts

After the recent market crash, the teams behind Core Foundation and Colend quickly intervened to help calm things down. They’ve stated they’re closely watching the market and working to ensure everything continues to run smoothly. According to their announcement, the crash was caused by market forces, not a problem with how the system itself is designed.

Analysts Point to Market Pattern

Crypto analyst Moon Jeff believes the recent price drop isn’t a unique problem with CORE, but rather a common pattern in the crypto market. He points to last year’s collapse of Mantra as a similar example, suggesting these kinds of sudden drops happen repeatedly across different projects. According to Jeff, the issue likely stems from wider market factors like excessive borrowing, a lack of available funds, and unfortunate timing, all of which can trigger similar events.

Rug Pull Concerns Surface

Meanwhile, a user on X expressed significant worries about a lack of openness and the possibility of someone with inside knowledge manipulating the situation. They wondered if the CORE team might have been involved, noting the token’s dramatic fall in value from about $7 to almost nothing.

He also pointed out two concerning signs: the project quickly disabling comments after fixing a recent issue, and reports of a major token holder selling off approximately 2.8 million CORE tokens.

On-Chain Data Fuels Speculation

Another analyst tracking the blockchain added to this information, pinpointing a wallet that reportedly sold almost 3 million CORE tokens. They found that this wallet has since emptied its holdings, suggesting a large, single sale might have been the cause of the recent price drop.

This supports the team’s understanding that a significant drop in the market triggered forced selling on platforms like Colend, although who initiated the sell-off and why is still unknown.

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FAQs

CORE is the main digital asset used within the Core DAO system. It’s used for staking, allowing users to participate in governing the network, and for paying transaction fees on its blockchain, which is built alongside Bitcoin.

Today, the price of CORE fell sharply because of significant selling. This triggered liquidations on Colend, leading to even more selling and a rapid price decrease.

Whether CORE will recover isn’t certain. It will likely depend on how the market feels and if enough people start buying again. If selling slows down and demand increases, the price could stabilize.

The Core DAO team has stated that the price drop was caused by market forces, not a problem with their technology. The system functioned as designed, but high leverage and selling pressure led to the decline.

There’s no evidence of a ‘rug pull’ (a fraudulent scheme where developers abandon a project and take investors’ money). The crash seems to be a result of leveraged trading, although some concerns have been raised about large transactions and a lack of transparency.

2026-03-30 13:23