In a dramatic event twist, Dego Finance is a veteran project at Defi Space, with its local token promise nearly half its value on June 4, 2025 after announcing a new liquidity program on BNB Chain.
Liquidity news inspires sudden sale
Dego Finance, a long-standing project in the Defi ecosystem, dropped more than 49% on June 4, after an announcement related to liquidity support on BNB chains. The price of the token fell from $2.63 in a few hours to a low of $1.33, before recovering slightly to around $1.41 at the end of the deal.
It fell sharply shortly after Dego publicly disclosed that it would support USD1 liquidity on the BNB chain.
Source: TradingView
Ironically, the meaning of rushing to develop positively. Hours after the price fell, Dego announced that it had officially begun purchasing $USD1 from World Free Finance (WLFI) as a liquidity reserve.
The goal is to signal deeper Defi integration and cross-collaboration collaboration. However, the timing of the announcement and the instability of the market seem to trigger unexpected sales pressure.
Contributing factors: whale movement and market conditions
According to on-chain analysis and community reports, shortly after the announcement, some important wallets uninstalled large DEGO positions. DEGO’s lack of synchronous communication strategies may have exacerbated concerns, especially among retail investors. The project has a relatively low market cap and high trading volume during episode amplification volatility.
It is also worth noting that turbulence is occurring in the wider cryptocurrency market during the same period. This macro environment may contribute to a rapid downward movement across low-liquid assets such as Dego.
To cope with market responses, Dego Finance issued an official statement late June 4 aimed at securing its community and clarifying the context of the announcement.
“We want to emphasize: There is no change in Dego’s fundamentals, token sets or long-term vision,” the team said. “The sell-off appears to be driven by short-term market reactions and we are actively reviewing on-chain data and external factors to ensure transparency.”
📢Dego’s official statement
Dear Dego Community,We realize that the recent price fluctuations are understandable after the announcement on June 4, which has attracted attention throughout the community. First of all, we want to emphasize: Dego’s… has not changed any…
-Deegego (@dego_finance) June 5, 2025
The project further emphasizes its ongoing mission as a decentralized incubator for cultural innovation in Defi, AI and Meme. Dego also noted that it is working closely with partners and exchanges to keep the market stable and will release further updates soon.
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