Sahara AI token sinks 50% as major market maker positions are liquidated

Sahara AI token sinks 50% as major market maker positions are liquidated
SAHARA’s price plunged after a major market maker liquidated its positions.

Sahara AI’s SAHARA token experienced a dramatic collapse, falling more than 50% in recent days and prompting widespread speculation among investors and analysts.

What initially appeared to some as a potential exploit or internal failure was later attributed to stress in the books of an unnamed market maker, according to new information shared by the project’s founder, Sean Ren.

In a statement posted on X, Ren said the team had “reviewed and confirmed” that all token smart contracts and core infrastructure remained secure, with no evidence of breaches or malicious activity. The project also ruled out concerns related to token unlocks or insider selling. Ren emphasized that SAHARA’s token generation event took place in June 2025 and that unlocks for core contributors and early backers are not scheduled until June 2026, in line with the published vesting plan.

Liquidity event behind price collapse

While fundamentals remain stable, the cause of the sharp drop appears linked to the unwind of a major market maker’s positions. According to Crypto Fearless, a large liquidity provider faced a rapid liquidation after an exchange flagged “unusual market making” tied to another token. Once the firm’s associated addresses were restricted and its positions liquidated under the exchange’s risk governance rules, amplified selling pressure spread to assets it was exposed to—including SAHARA and MMT.

Data from CoinGecko shows that between November 29 and 30, the token plunged from an intraday high of $0.081 to a low of $0.0346. As of December 1, it was stabilizing near $0.040–0.041, with the token down 3% over the past 24 hours, a market cap of $98–99 million, and 24-hour trading volume exceeding $159 million.

Sahara AI looks ahead

Despite the turmoil, Ren said Sahara AI’s strategy remains unchanged. The company plans to strengthen its AI infrastructure for professional services in 2026 while expanding work in data labeling, domain-specific agents, and agentic protocols that enable next-generation revenue-sharing mechanisms. It also aims to deploy new crypto-AI applications designed to reduce friction in user experience.

The coming weeks will reveal whether the token can recover or whether prolonged liquidity pressures will shape its trajectory in a volatile crypto-AI market.

CryptoQuant CEO Ki Young Ju says Ethereum appears significantly undervalued based on 10 of 12 major valuation models on the ETHVal platform. Metcalfe’s law and the DCF staking yield model estimate ETH’s fair value between roughly $9,000 and $9,500, suggesting a potential upside of 200–213%.

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