October 1, 2022

During the dump, the Matic Network token lost more than 70% of the value

During the dump, the Matic Network token lost more than 70% of the value

After the price of the Matic Network (MATIC) rose from $ 0.029 to $ 0.04 last week, in just three hours, the token fell more than than 70%. At the time of writing, MATIC is trading at $ 0.017. Although the Matic Network team has not made an official announcement, the Twitter community has suspected dishonesty.

During the dump, the Matic Network token lost more than 70% of the value

Soon, Sandeep Neilval, co-founder and head of the Matic division, hastened to refute any allegations. He wrote:

“It will very soon become clear that we are not behind it,” adding that at this stage the project team “is analyzing and intends to become stronger than ever thanks to this obvious manipulation.”

In the course of studying the situation on the MATIC market, SamuelJ.J. Gosling, the founder of Validity, a cryptocurrency valuation platform, discovered that the project has recently transferred nearly 1.5 billion MATICs (worth nearly $ 70 million), all of which were sold for liquidation on the Binance cryptocurrency exchange.

At the same time, according to ViewBase, the transfer amount was closer to $ 218 million in the last 30 days, while one of the EthHub developers said it was lower than the data announced by Gosling.

In his defense, Neilval said:

“Why would a project do this on purpose?”

In fact, this question excites everyone. Binance CEO Changpeng Zhao also joined the conversation, saying that the Matic team has nothing to do with the sudden drop in the value of the token.

In turn, Samuel J.J. Gosling apologized for having recalculated the transferred funds, apparently adding the transfer of funds between the blocking account of the MATIC smart contract to the main one.