One of the more popular projects that had their Initial Exchange Offering (IEO) on Binance Launchpad, MATIC, went through a sudden overnight drop. The token lost upwards of 70% of its value in a violent red candle. Rumors started to circle around the community that the CEO of the project is behind it, but Changpeng Zhao was quick to dismiss it, denying internal involvement and saying that it was panic selling that caused the plunge.
MATIC Drops 70% In A Day
Matic was among the first projects to have their Initial Exchange Offering (IEO) on Binance Launchpad. It generated serious returns for those who had the chance to participate.
Over the past couple of weeks, MATIC has been on a serious uptrend, gaining more than 75% against BTC. However, almost all of that came to a swift end in the past 24 hours, as the token suddenly dropped, losing more than 70% of its value.
As it can be seen in the above chart, MATIC plunged from about 0.00000567BTC to 0.00000153BTC. Even though it has been recovering ever since the cryptocurrency is still down about 50%. The situation is almost the same when trading against USDT, as MATIC is down 54% at the time of this writing.
What Caused The Sudden Plunge?
Needless to say, sudden moves of the kind are almost always unexpected, especially given the token’s positive performance over the past couple of weeks.
The community was quick to react and start seeking possible causes. Rumors started to manifest, claiming that the Matic Network Foundation transferred about 15% of the total supply, worth more than $67 million at that time, to Binance for liquidation. Sundeep Nailwal, the COO and Co-Founder of the project, was the one who took the blame.
However, the high-ranked company official was quick to dismiss the blame, saying that his team is not behind it and that “some FUD accounts are trying to insinuate.” He also shared they will be publishing a detailed analysis, vowing that the project will “come out stronger than ever.”
Supporting Nailwal was the CEO of Binance, Changpeng Zhao. He said that it’s clear that the MATIC team hasn’t do anything to do with the drop, which was evidently caused by panic selling of big traders.
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. https://t.co/wOVF6tEBkQ
— CZ Binance (@cz_binance) December 10, 2019