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

After the price of Matic Network (MATIC) rose from $0.029 to $0.04 last week, the token fell by more thanthan 70%. At the time of writing, MATIC is trading at $0.017. Although the Matic Network team did not make an official announcement, the Twitter community suspected foul play.

Soon, Sandeep Nailval, co-founder and head of the Matic division, was quick to deny any allegations. He wrote:

Just woke up to this nightmare due to a distress call by someone
It will be clear very shortly that we are not behind this, as some FUD accounts are trying to insinuate
We will post a detailed analysis and we will come out stronger than ever from this evident manipulation

— Sandeep Nailwal-Matic Network (@sandeepnailwal) December 10, 2019

“Very soon it will become clear that we are not behind this,” adding that at this stage the project team is “conducting analysis and intends to become stronger than ever thanks to this apparent manipulation.”

While studying the MATIC market situation, SamuelJJ Gosling, founder of cryptocurrency valuation platform Validity, discovered that the project had recently moved nearly 1.5 billion MATIC (worth almost $70 million), all of which were sold for liquidation on the Binance cryptocurrency exchange.

Just did some snooping around to find that the#Matic Network Foundation has transferred $ 1,495,322,715 MATIC (15% of the supply, approximately $ 67,314,942 at ATH) in the past 50 days, of which from seems to have been sent for liquidation at #Binance. https://t.co/FLPl4HyfiO pic.twitter.com/dpYG8rMoHX

— Samuel JJ Gosling (@xGozzy) December 10, 2019

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 stated 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.

Our team is still investigating the data, butit's already clear that the MATIC team has nothing to do with it. A number of big traders panicked, causing a cycle. Going to be a tough call on how much an exchange should interfere with people's trading. https://t.co/wOVF6tEBkQ

— CZ Binance (@cz_binance) December 10, 2019

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