Why the token Matic Network has fallen by 50 per cent in five minutes?

One of the first projects launched in the form of IEO on Binance Launchpad, lost most of its value in just a few minutes. Before this token Matic showed quite good growth at the end of November. Almost all of it was offset by today’s night fall.

Among the holders Matic began to panic, and the creators of the project have accused of manipulations. It had to intervene even to the head of the exchange Binance Canino Zhao. He assured all that the team of developers token not involved in the incident. Whether so it actually?

Why fall cryptocurrency?

To realize the scale of what happened, just look at the chart below. The maximum rate recorded on may 21, 2019 — he was equal to 0.045 dollar. Tonight the cost of the token has fallen from 0.03 to 0.012 of the dollar, and it happened in five minutes. Those who bought token on top of the Pampa, suffered very large losses.

Daily schedule of the course Matic immediately after the fall. Source: Tradingview

Over the last couple of weeks Matic has seriously risen in price in relation to Bitcoin: its price increased by about 75 percent before the end of November. However, only in recent days the cost Aldona decreased by 55 percent. In a trading pair with USDT cryptocurrency also fell by about 54 percent.

Read also: My experience of trading. What cryptocurrency exchanges need to choose?

After the dump began the search for the perpetrators of the fall. Among investors there was a rumor that the team Matic Network Foundation has transferred about 15 percent of the total token cost of nearly $ 67 million in purse Binance to eliminate. Yet everybody blames the co-founder of the project of Sandip Nilwala.

On Twitter last began to deny all charges in the party and promised to find the true cause of the dump.

Very soon it will be clear that we do not stand for this, as some have tried to prove the FUD accounts. We will publish a detailed analysis and come out of this obvious manipulation is stronger than ever.

According to Nilwala, the matter involved in the market makers [that is, major market players — editor’s note], who decided very profitable to short Matic. First, they artificially inflated the price of the token, in order to sell their stocks of the unlucky traders, who were afraid to miss the potential here and bought the coin. We are talking about the FOMO syndrome — we mentioned it in today’s longride.

This scheme works even with the advent of stock markets, but the cubs still carried it. Not to be the victims of the dump Matic, never buy the asset on the emotions.

CEO Binance Chanpen Zhao also said that what happened was not fraud or something like that.

A few large traders panicked, which caused a chain reaction of falling. The decision of the question is quite difficult, as the exchange must decide to what extent to intervene in the trading assets.

Cryptocommunist responded quickly to the fall. Enthusiast under the name Whale Panda called Matic sitraina, which has fallen in the spirit of the cryptocurrency market 2014-2016.

Trader under the name GalaxyBTC also called Matic another sitkina and advised not to dwell on the reasons for his downfall.

By the way, the collapse of the market caused a serious stir in the auction Matic, although at the time of the fall of the trading activity was suspiciously low. In General, fans play on the slide today earned a great amount. The question is, who dropped the market, but hope the names is not necessary. And this makes no sense.

Trading volumes Matic today. Source: CoinMarketCap

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