The team behind SaharaAI (SAHARA) has publicly refuted speculation that the token’s recent sharp price decline was caused by sales from team members or early investors. In an official statement, the project emphasized that all allocated tokens for the team and investors remain untouched on-chain, and that market makers Amber Group and Hering Global continued normal operations throughout the crash.
On-Chain Evidence and Market Maker Activity
According to the SaharaAI team, the token’s smart contract showed no signs of an attack, and custody of the tokens remains under the foundation’s control. The team also clarified that on-chain transfers observed prior to the price drop were scheduled moves to provide liquidity for a cross-chain bridge to the BNB Chain, not sales. This explanation directly addresses community concerns that internal actors were responsible for the sell-off.
Crash Triggered by Futures Liquidations
The team attributes the June 9 crash—which saw SAHARA fall approximately 46% from around $0.03 to $0.013—to a cascade of liquidations driven by futures selling pressure. They noted that leveraged long positions had accumulated to an all-time high in the three weeks leading up to the event. When the price began to fall, these leveraged positions were liquidated, triggering a chain reaction that accelerated the decline.
Market Impact and Current Trading
Despite the team’s explanation, market sentiment remains cautious. According to CoinMarketCap, SAHARA is currently trading at $0.01588, down 11.62% over the past 24 hours. The token has not yet recovered to pre-crash levels, and the incident has raised questions about the risks of high leverage in small-cap cryptocurrency markets.
Why This Matters
The SaharaAI incident highlights the vulnerability of tokens with concentrated futures positions. For traders and investors, it underscores the importance of monitoring leverage levels and liquidity conditions, particularly in projects with lower market capitalization. The team’s proactive transparency—including on-chain proof and market maker confirmations—may help rebuild trust, but the market’s reaction suggests that confidence has not yet been fully restored.
Conclusion
The SaharaAI team’s denial of insider sales is supported by on-chain data and market maker statements, but the token’s price remains under pressure. The crash serves as a case study in how cascading liquidations can amplify losses in leveraged markets. Whether the project can recover will depend on restoring community confidence and demonstrating stable trading conditions going forward.
FAQs
Q1: Did the SaharaAI team sell tokens during the crash?
A1: No. The team states that all allocated tokens for the team and investors remain untouched on-chain, and no sales occurred.
Q2: What caused the SAHARA token to crash by 46%?
A2: The crash was triggered by a cascade of liquidations from leveraged long positions, which had reached an all-time high prior to the event.
Q3: Are market makers Amber Group and Hering Global still involved?
A3: Yes. The team confirmed that both market makers were operating normally during the crash and continue to provide liquidity.
