TAC, the native token of TAC Protocol, plunged more than 90% in roughly 15 minutes after listing on Binance Alpha, wiping out most of its market value and raising fresh concerns about token-launch mechanics around venture-backed crypto projects.
The token fell to around $0.0063 during the sharp sell-off, with some market data showing a deeper decline toward $0.0046 after trading near $0.06. The move came after TAC was listed on Binance Alpha and offered through Binance Futures as a TAC/USDT perpetual contract with up to 50x leverage, creating conditions in which spot selling and derivatives liquidations could reinforce each other.
TAC Protocol is an EVM-compatible blockchain project designed to connect Ethereum decentralized applications with the TON and Telegram ecosystem. The project has been marketed as infrastructure for bringing Ethereum DeFi into Telegram’s large user base. TAC previously raised $11.5 million across seed and strategic rounds, with backers including TON Ventures, Hack VC, Animoca Ventures, Symbolic Capital and Spartan Group.
The scale of the decline was striking because it occurred despite that institutional backing. Reports said the crash was driven by heavy token selling shortly after the Binance Alpha listing, with some analysts pointing to airdrop recipients dumping allocations into limited market depth. There was no confirmed new hack or smart contract exploit linked to the price collapse at the time of reporting.
Airdrop Selling Meets Leverage
The TAC crash illustrates how vulnerable new tokens can be when circulating supply, liquidity and incentive design are poorly aligned. Airdrops can help bootstrap communities, but they can also create immediate sell pressure if recipients treat tokens as free liquidity rather than long-term governance or utility assets.
That risk becomes more severe when a token is simultaneously exposed to leveraged derivatives. Binance Futures offered TAC/USDT perpetual trading with up to 50x leverage, which can amplify volatility when spot prices move quickly. Forced liquidations of leveraged long positions can add another layer of market selling, accelerating a decline that may have begun with ordinary spot exits.
The sell-off also shows how Binance Alpha listings can attract rapid speculative flows without guaranteeing durable liquidity. For traders, early access can mean opportunity, but it also concentrates risk into a narrow window when price discovery is unstable and large holders may be looking to exit.
TAC’s previous security history added to investor anxiety. In May, the project suffered a $2.8 million cross-chain exploit affecting its TON-Ethereum bridging layer. Reports at the time said the team recovered about 90% of the funds through negotiations with the attacker, but the episode still weakened confidence in the protocol’s risk controls.
VC Backing Offers Limited Protection
The collapse is a reminder that venture capital backing does not shield token investors from launch volatility. TAC’s investor list gave the project institutional credibility, but secondary-market buyers still faced the practical risks of float structure, unlocks, liquidity fragmentation and speculative leverage.
For the TON and Telegram ecosystem, the incident is reputationally uncomfortable. TAC’s core pitch is to bring Ethereum DeFi into Telegram’s user-rich environment, an ambition that depends on trust in bridging, liquidity and execution infrastructure. A 90% token collapse within minutes makes that narrative harder to sustain, even if the underlying project continues development.
The broader market impact is likely contained because TAC remains a relatively small token compared with major crypto assets. The more important implication is structural. New token listings are increasingly shaped by a combination of exchange access, airdrop distribution, perpetual futures and social-media momentum. When those forces move in the same direction, price dislocations can be extreme.
For investors, the lesson is straightforward: launch-day liquidity matters as much as backer quality. A token backed by well-known funds can still collapse if early holders are incentivized to sell, order books are shallow and leverage magnifies the move.
Until TAC Protocol or Binance provides a fuller explanation, the crash will be viewed as another warning about the fragility of newly listed crypto assets. In a market where a token can lose 90% in 15 minutes, institutional branding is no substitute for transparent tokenomics, deep liquidity and controlled market structure.
