Binance IEO, Matic Network [MATIC] Drops by 60% as Traders Get Rekt

Matic Network [Matic] dropped 60% from a price of $0.041; it records a daily low at $0.011.

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The dump initiated a series of memes jokes on the fall. However, the buyers of the cryptocurrency just experienced a thrilling cryptocurrency roller coaster. Crypto investor, TraderXO who was even apprehensive of a dump tweeted,

Ok – no one expected this much of a dump in one hour

maticusd 1d binanceMATIC/USD 1-Day Chart on Binance (TradingView)

So What Happened with Matic Network?

Matic Network primarily trades on Binance with around 95% of the total trading volume. Hence, the most obvious suspicion would be a dump at the exchange. The memes of Binance CEO, Changpeng Zhao pulling off the dump are rampant in crypto-twitter.

The charts reveal an apt example of a pump and dump pulled off in the crypto markets. MATIC gained 175% in less than a fortnight, as the price skyrocketed from $0.015 to $0.041.

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MintFlint Airdrop has been identified as the leading cause of the pump. The crypto project announced leveraging MATIC for their scaling solution and also distribute Flint tokens according to the MATIC help by users.

Ironically enough, MintFlint platform ‘allows traders to subscribe to other traders and be notified when they buy/sell coins.’

One of the other leading causes of the drop has been the 20X leveraged margin trade listed on India’s derivatives exchange, Delta Exchange, last month. Moreover, Binance also supports leveraged trading on it.   

The cryptocurrency also lacks proper distribution and hence the liquidity is on the low side as well. The  tweeted,

Haha thought it was an exit but it’s just the free market. The real root of this volatility is an insanely skewed distribution of$MATICwhich equals a highly illiquid market. “The top 100 holders collectively own 99.11% (9,911,470,937.07 Tokens) of#MaticToken”

In short, the market capitalization of the cryptocurrency was far too susceptible to manipulation and whale action.  Some of the other IEOs also followed suit at Binance with the Matic Network like the Harmony (One) and Ravencoin as well. The cryptocurrencies are down 18% and 25% respectively.

Do you think that the dump will affect the other altcoins as well? Please share your views on it. 

Summary

Binance IEO, Matic Network [MATIC] Drops by 60% as Traders Get Rekt

Article Name

Binance IEO, Matic Network [MATIC] Drops by 60% as Traders Get Rekt

Description

Matic Network [Matic] dropped 60% from a price of $0.041; it records a daily low at $0.011. 

Author

Nivesh Rustgi

Publisher Name

CoinGape

Publisher Logo

cryptocoach

Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.

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