Are These Whales Behind the MATIC Price Drop?

There has been a complete massacre in the cryptocurrency market. The SEC’s lawsuit against leading cryptocurrency exchanges Binance and Coinbase triggered panic selling. Whales accompanied it. According to on-chain data, these whales may be behind the sharp drop in MATIC price.

Whales sold, MATIC fell hard!

On-chain data reveals that market-making platforms Jump Trading and Cumberland deposited millions of MATIC tokens on the world’s two largest cryptocurrency exchanges on the evening of June 9, just before they hit a steep 30% drop. Accordingly, Jump Trading transferred 22 million MATIC (approximately $14 million) from its Robinhood account to Binance and Coinbase exchanges before the crash. Meanwhile, Jump Trading currently holds $3.483 million in crypto.

Also, according to a tweet from Lookonchain on June 10, Cumberland sent 9 million MATIC tokens to Binance with a valuation of over $6.3 million. Additionally, 5 million MATIC tokens worth approximately $3.5 million were deposited on the Coinbase exchange.

In addition, Lookonchain platform Cumberland has revealed that a cryptocurrency wallet associated with Jump Trading and Robinhood has deposited 9.4 million MATIC tokens on various exchanges. It is estimated that these deposits may have been sold on low-liquidity exchanges, which could explain the sudden 30% drop in the price of MATIC.

Cryptocurrency market is taking a blood bath

Meanwhile, other tokens such as Cardano (ADA) and Solana (SOL) have also exhibited similar bearish trends, with drops of 23% and 22% over the past 24 hours. Many observers believe that the drop in the prices of these tokens is a result of the last legal action taken by the US Securities and Exchange Commission (SEC) against Binance and Coinbase in early June. Interlock was announced on June 5 by the SEC’s Binance Holdings Ltd. and CEO CZ filed a lawsuit accusing him of violating US securities regulations.

In the lawsuit, the SEC claims that a number of assets offered on Binance are securities. As you follow on Kriptokoin.com, these assets include BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS and COTI.

Tokens marked as securities by the SEC fell significantly as of noon on June 10. Notably, MATIC dropped 19%, SOL 17%, ADA 16%, FIL 22% and SAND 19% in just one hour. This development has plunged the cryptocurrency market into a red sea. It particularly affected the tokens of projects that the SEC considers securities. However, Bitcoin and Ethereum only experienced minor drops of less than 2%. Bitcoin remains above the key $25,000 support level. According to Coinecko, MATIC is currently trading at $0.58. This represents a drop of over 26% in the last 24 hours.

Source: Coinecko

The cryptocurrency market continues to be affected by several factors, including regulatory actions and market dynamics. Investors and traders are advised to follow developments closely and be careful in their decision-making processes.