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.
Soon, Sandeep Neilval, co-founder and head of the Matic division, hastened to refute 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
“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.
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 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.
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 having recalculated the transferred funds, apparently adding the transfer of funds between the blocking account of the MATIC smart contract to the main one.