The LISA token suffered a sudden and brutal crash on January 12th, leaving many traders in shock. In just 24 hours, the token price fell by nearly 76%. The decline began after a plunge worth about $170,000. It happened in just 28 seconds. On-chain analyst @ai_9684xtpa first flagged the X incident.
What triggered the crash?
According to on-chain data, three alpha users may be controlled by the same person. They sold large quantities of LISA around the same time. The three transactions occurred at 10:22 UTC.
- First sale: $39,540
- Second sale: $45,540
- Third sale: $85,668
All three transactions were completed within just 28 seconds. This sudden fire sale flooded the market with tokens. LISA was so illiquid that its price crashed almost instantly. As soon as the price started falling, many users rushed to sell. This makes the crash even worse.
Why were so many people trading LISA?
LISA gained popularity on Binance Alpha due to its 4x trading rewards program. This means users can earn 4x Alpha Points just by trading LISA. Because of this reward system, many users did not purchase LISA for long-term value. Instead, they were only exchanging it for farm points.
This created huge trading volumes but little actual liquidity. Simply put, the market seemed busy, but it was fragile. So when a large sell order occurred, there wasn’t enough demand to absorb it. The result was a fast, deep crash.
Panic selling made the situation worse.
Panic spread quickly as prices began to fall. Many users who had earned alpha points rushed to relinquish their positions. This triggered a wave of selling, causing prices to fall further. Within a few hours, LISA fell from around $0.039 to less than $0.01.
LISA 24 小时闪崩 76%，又一个 Alpha 代币「收网」了🩸
三个 Alpha 用户（不确定是否为同一人）在 10:22 通过三笔交易在 28 秒内抛售 17 万美元的 LISA，推动币价短时快速下跌
1️⃣ 交易一：10:22:28 抛售 39540 美金的 LISA https://t.co/3ytsOUx7Yz
2️⃣ 交易二：10:22:36 抛售 45540 美金的 LISA… pic.twitter.com/pj777LoDSD— Ai 姨 (@ai_9684xtpa) January 12, 2026
Charts shared by traders show a huge spike in volume at the exact moment of the fire sale, confirming how quickly the market collapsed. X community members quickly classified the event as another “Alpha Token Roundup.” A term used to refer to tokens that crash after the reward-driven hype dies down.
What this means for traders
This incident highlights the significant risks in crypto reward programs. When exchanges offer trading rewards, they can attract huge trading volumes. But that volume is often artificial. If a large holder sells, the price can plummet in seconds. Many traders are now saying the crash shows how dangerous illiquid tokens can be. This is especially true when it is driven by incentives rather than real demand. Some users have also questioned Binance’s oversight of Alpha tokens and whether stronger protections should be introduced.
What’s next?
The LISA crash is a stark reminder of how quickly things can go wrong with cryptocurrencies. Dumping just one wallet at the wrong time can wipe out weeks’ worth of profits in seconds. The lesson for traders is simple. High rewards often come with high risks. Additionally, if liquidity is thin, an exit can be very painful. As always, caution is better than hype.
