ZachXBT Points to Insider Control as EdgeX Attributes Token Plunge to 'External' Forces
Blockchain sleuth ZachXBT alleges that edgeX decentralized exchange insiders maintained control over nearly all token supply through limited float circulation.
The decentralized exchange platform edgeX has pointed fingers at what it describes as 'deliberate' market manipulation orchestrated by an unidentified external party following a dramatic collapse exceeding 40% in its EDGE token value, though blockchain investigator ZachXBT has rejected this explanation.
According to CoinMarketCap data, the edgeX (EDGE) token tumbled from approximately $1.20 down to a low point of $0.3663 during Tuesday's trading session, representing a decline of roughly 70%. At present, the token is valued at $0.6474, marking a decrease of approximately 45% in the last 24-hour period.
Through a statement posted on X, edgeX's development team recognized the abrupt deterioration in their native token's value, informing their community members that they had "observed a sudden and irregular price movement" while actively conducting an investigation into the matter.
As a counter-response, ZachXBT asserted that edgeX's token supply had been dominated by a limited group of insiders who maintained operations with a minimal float, rendering the token naturally susceptible to these kinds of volatile events. Additionally, he called for the project to make public disclosures regarding the counterparties and market-maker arrangements that played a role in the token's collapse.
The current circulating supply consists of just 350 million EDGE tokens against a maximum total supply of 1 billion, indicating that over two-thirds of the complete supply remains unreleased to the market. When a circulating float is limited, it can increase a token's susceptibility to dramatic price fluctuations, particularly when liquidity becomes concentrated or when major token holders execute sales into order books with minimal depth.
EdgeX says project not hacked
Within a subsequent announcement, edgeX stated that their platform had suffered no security breaches or compromises of any nature. "What we have identified so far suggests deliberate attempts by certain external party to manipulate the market price of EDGE," the development team published, characterizing the situation as an issue concerning market integrity.
ZachXBT, however, remained skeptical of this explanation. "We investigated ourselves and did not find ourselves guilty even though we control nearly the entire supply," he wrote with apparent sarcasm.
Based on data compiled by DefiLlama, EdgeX currently ranks as the 16th largest DEX when measured by trading volume during the previous 24-hour period. The platform maintains a total value locked (TVL) amounting to $137 million.
DEX trading volume declines
Trading volume throughout decentralized exchanges spanning all blockchain networks has experienced a significant retreat from previously recorded peak levels.
This widespread reduction in DEX market activity has the potential to amplify the vulnerability of tokens with limited trading depth to severe price movements, although EDGE's dramatic crash additionally raised project-specific concerns regarding supply distribution, market maker relationships and control by insiders.
Following a surge that approached $45 billion during the early months of 2025, the combined decentralized exchange volume has experienced a downward trajectory and has predominantly settled within a daily range spanning $5 billion to $20 billion throughout the initial half of 2026, with an additional peak reaching approximately $30 billion around October 2025 before declining once more, based on information from DefiLlama.
This diminished level of market activity represents a wider withdrawal in onchain trading enthusiasm subsequent to the heightened activity witnessed in early 2025, resulting in DEX marketplaces becoming less liquid and increasingly susceptible to disproportionate price movements.