MATIC token saw a flash crash with several stop losses getting triggered over the rumor that founders of the Matic Foundation were liquidating their holdings.
By Bhushan Akolkar
Updated
3 mins read
It has turned out to be a horrible day for Matic (MATIC) token investors as the token price has crashed over 70% in a single hour. Today, December 10, the MATIC price has hit a low of $0.012 before partially recovering, as per the chart on CoinMarketCap.
Popular crypto traders and analysts took it to Twitter talking about this carnage.
Crypto. The stuff of dreams and nightmares. $MATIC was up 180% in two weeks before crashing 70% in an hour. pic.twitter.com/zo9LzP80L8
— Alex Krüger (@krugermacro) December 10, 2019
Today’s price tank has wiped off all of the investors’ gains over the last month. At press time, MATIC is trading for a price of $0.019 with a market cap of $50 million. Currently, there’s no clear reason why the MATIC token price is crashing but two theories are floating in the market at this point.
Twitter user Samuel Gosling tweeted that millions of dollars worth of MATIC tokens have been sent from the Matic Network Foundation’s wallet to other crypto exchanges like Binance. This has led to the speculation that the founders of the project have been cashing-out their token holdings.
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
— .:⠠⋮⠠:. (@deomaius) December 10, 2019
With the panic created in the market, several sell orders resulted in the triggering of multiple stop losses thereby creating a cascading effect.
Upon further investigation into the matter, it has turned out that the claims by Samuel aren’t true. Well, the damage is already done, and the fall has been brutal thereby heavily hurting investors.
The Matic Network Foundation has been quick to issue a clarification to its community. In its blog post, it wrote:
“We want to strongly state that the allegations of token movement from our Foundation account, made by a FUD account against Matic team are completely baseless.”
Co-founder of the Matic Foundation Sandeep Nailwal also issued a clarification on Twitter.
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 | AggLayer 👿 (@sandeepnailwal) December 10, 2019
With Binance being the IEO platform provider for MATIC, CEO Changpeng Zhao also issued a statement in favor of Matic. He said:
“Our team is still investigating the data, but it’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”.
In another tweet, Samuel Gosling who triggered the FUD apologized for his miscalculation saying only 3% of the supply was liquidated.
Well, FUD has always been a part of the crypto industry but this was certainly uncalled for. With major investors liquidating their MATIC tokens, will they return to buy again?
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
