Siren crash exposes risks of concentrated token ownership
The SIREN token lost nearly 70% of its value within 24 hours. The price dropped from $2.56 to $0.79, before partially recovering to around $1. This happened immediately after a sharp rally in the asset.
A day earlier, the token had reached $2.81, showing a strong upward impulse, according to CoinGecko.
Over the past month, the token gained about 1300%, starting from around $0.22. Such a surge attracted significant attention from traders. However, high volatility quickly led to a reversal. The market displayed a classic “pump and dump” pattern.
Analysts pointed to token concentration
Before the drop, onchain analysts had already warned about risks. Researcher EmberCN stated that a significant portion of the supply could be controlled by a single entity. According to the data, up to 644 million SIREN (about 88% of the supply) may have been under the control of one structure.
This was equivalent to roughly $1.8 billion at the time of estimation. Bubblemaps also identified large wallet clusters. One of them controls around 50% of the circulating supply. Such concentration creates a risk of manipulation. Any sell-off by large holders can trigger a market collapse.
Distribution structure raised further concerns
Data showed that tokens were distributed through a complex wallet structure. More than 200 addresses were funded via PancakeSwap. The tokens were then spread across 47 wallets. Such a structure may be used to obscure actual control.
Bubblemaps also noted that the project had effectively been “abandoned” after its launch in February 2025. This raised doubts about the asset’s long-term value. The sharp price increase may have been driven by artificially constrained supply, followed by rapid liquidity exit. Such patterns often end in sharp crashes.
Market once again highlights low-liquidity risks
The SIREN case underscores the vulnerability of small-cap tokens. With limited liquidity, even relatively small sell-offs can cause major price swings. Supply concentration amplifies this effect. In this case, control over a large share of tokens enabled market influence.
Such events are common in newer or lesser-known projects, especially those tied to AI narratives. Investors often react to hype while overlooking fundamental risks. As a result, markets face sharp corrections. The SIREN story is another example of the instability of such assets.
Recently we wrote that the total cryptocurrency market capitalization stands at around $2.41 trillion, gaining approximately 2.1% over the past 24 hours, while the Fear & Greed Index remains at 32, indicating persistent fear and caution among market participants despite the local recovery.
Latest Scam Alert News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
