MATIC flash crashed over 70% in just 3 hours, Binance is unavoidable

The Matic blockchain platform today has attracted a lot of attention from the community when the MATIC token dropped by about 70.75% in just 3 hours. Although Matic Network has not yet released a statement about the incident, many comments on Twitter have speculated that there were signs of bad play.

Matic price

Matic FUD

Shortly after the flash crash, Matic Sandeep Nailwal’s co-founder and CEO dismissed FUDs. “It is very clear that we are not behind this. We will post an ever more detailed and powerful analysis of this apparent manipulation,” Nailwal tweeted.

Looking at the transactions made by The Matic Network Foundation, Samuel JJ Gosling, founder of the crypto valuation platform Valalit, tweeted that the Matic Network Foundation has transferred nearly 1.5 billion MATIC (worth nearly 70 million dollars at ATH) in the last fifty days. All of these are sent for liquidation to the Binance exchange.

However, it seems that the 1.5 billion tokens cited may not be accurate. ViewBase data shows that the amount transferred is nearly $ 218 million in the past 30 days. Meanwhile, a builder at EthHub stated that “in the past 50 days, they have transferred 290,000,000 MATIC to Binance NOT 1,495,322,715”.

Nailwal further stated that all accurate data will be posted later and “the money transferred is from a smart contract account locked in the fund’s wallet”. He also emphasized that the money transferred to Binance or any other wallet is linked to their token issuance.

Reaction from Binance

Binance CEO Changpeng Zhao (CZ) has given a temporary relief on what happened to Matic. CZ said the exchange is still investigating the data, and Binance is very clear that the Matic team does not have any action on the sudden decline in the value of the token.

While With Nailwal calling “this is a concerted effort to discredit (their) reputation,” perhaps more sophisticated analysis will reveal what has really happened in the past three hours.

Community’s Reaction

What a terrible day for those who bought Matic because of FOMO, after the token became one of Binance’s IEO projects. What makes the community wonder is why a project does this purposefully?

In the context of the Matic flash crash, a suspicious whale move was recorded and reported by Whale Alert. Accordingly, 200M USDT was transferred from Binance to the Tether Treasury. Many people think that this is a move to dump profits of Matic.

And some traders thought that Matic is likely a scam:

Famous Trader Alex Krüger also commented on this chaos that this is a prime example of the thin line between “dreams and nightmares. MATIC increased by 180% in two weeks before collapsing 70% in an hour”.

The community is also wondering about how to choose some low liquidity & cap coins in Binance’s margin trading:

But, not everyone is pessimistic about this situation. Trader Michael Cerisano is quite excited because this is an opportunity to buy Matic for less than 200 sts.

Read more:

Follow us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like