Binance Alpha-listed TAC suffered one of the sharpest crypto flash crashes of the year after its token plunged more than 90% in roughly 15 minutes on July 7.

While no security breach or protocol failure has been confirmed, the crash has renewed concerns about liquidity risks and token concentration among newly listed crypto assets.

TAC Suffers Violent Flash Crash

TAC dropped from around $0.06 to nearly $0.004 within minutes, with trading volume surging as panic selling accelerated. The token later stabilized near its lows, remaining down more than 90% from prices seen earlier in the day.

The move came just one week after TAC reached an all-time high of approximately $0.067, highlighting the extreme volatility that can accompany newly listed digital assets.

Strong Backers, But No Official Explanation

TAC is developing an Ethereum Virtual Machine (EVM)-compatible blockchain designed to bring Ethereum applications into the TON and Telegram ecosystem.

The project has raised roughly $11.5 million from prominent crypto investors, including TON Ventures, Hack VC, Animoca Ventures, Symbolic Capital, Primitive, and Spartan Group.

Despite the dramatic price collapse, neither the TAC team nor Binance had announced a confirmed cause at publication. There is also no evidence that today’s move resulted from a hack or network exploit.

Liquidity and Token Concentration Under Scrutiny

Market observers have pointed to several possible factors behind the collapse, including thin order-book liquidity, large holder selling, and cascading liquidations.

Unverified on-chain discussions have also questioned whether a small number of wallet clusters control a significant share of circulating supply. However, these claims remain unconfirmed and should not be treated as established fact.

The selloff follows TAC’s May 2026 cross-chain bridge exploit, which resulted in approximately $2.8 million in losses before affected users were later compensated.

Although unrelated to today’s price action, the earlier incident may have contributed to fragile market sentiment.

Investors are now watching for an official statement from the TAC team, exchange updates, and on-chain data that could explain the sudden collapse.

Until more information emerges, TAC is likely to remain highly volatile, with liquidity conditions and large-wallet activity becoming key indicators for traders assessing the token’s recovery prospects.

Source: BeInCrypto