A certain cryptocurrency drops 76% in 24 hours: How trading incentive mechanisms amplify market risk

TokenomicsTrapper · 2026-01-12T04:24:12+00:00

A certain token, LISA, plummeted 76% within 24 hours due to three Alpha users selling off $170,000 in a short period, triggering panic. The fourfold trading volume rewards from leading exchanges intensified market risk, prompting retail investors to follow suit and sell off, creating a vicious cycle. This incident serves as a reminder for traders to pay attention to how incentive mechanisms impact the market.

TokenomicsTrapper

2026-01-12 04:24:12

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【ChainNews】On-chain data monitoring shows that a certain token LISA experienced a 76% flash crash within 24 hours. The trigger point of the event is quite interesting: three Alpha users sold a total of $170,000 worth of LISA positions within 28 seconds at 10:22 a.m., directly causing a rapid plunge in the token price.

Behind the seemingly simple sell-off, there is a larger market risk hidden. Due to a leading exchange’s Alpha program offering 4x trading volume rewards, this incentive mechanism actually amplifies the risk. Once large holders start selling, it triggers panic sentiment. Retail investors looking to earn rewards by “whale hunting” see the price plummet and often follow suit, fearing being caught in a trap. The result is an even further collapse in the token price.

This case reflects a problem: trading incentive mechanisms can become accelerators of collapse under extreme market conditions. When large-scale sell-offs occur, participants chasing trading volume rewards tend to exacerbate the decline, creating a vicious cycle. For traders, understanding this market dynamic is crucial.

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