The world’s leading cryptocurrency exchange, Binance, occasionally supports some altcoin projects through investment. One of these projects recently made a critical announcement. Accordingly, the project has prepared and announced a token buyback plan in order to stabilize the supply. However, the announcement caused panic among investors and the price of the coin fell sharply. Analysts have warned investors about the massive sell-off by whales.
Binance-backed altcoin unveils token buyback plan
Binance-backed crypto gaming platform BinaryX has announced a buyback plan for its native altcoin asset, BNX. Announcing that it will repurchase BNX tokens, the project also disclosed the details of its upcoming recovery plan. The announcement comes after rumors surfaced that the core team of the project was dumping 4 million BNX per hour on Binance. Due to these rumors, the price of the token has dropped by over 50%. To contain the situation, the project team argued that the allegations were untrue.
The project informed its investors about the issue by sharing a tweet on 3 December. Accordingly, the project team did not sell “not a single BNX” contrary to the claims. It was also stated in the tweet that all the operations of the project were “running smoothly”. Despite the buyback announcement, it remained unclear at what price the tokens would be repurchased. The team has not made any statement on this matter so far. Panicked BNX holders started selling their altcoin holdings. Among them, whales took the lead.
BinaryX (BNX) price has dropped over 50 percent in the last 24 hours
The team’s statement did not reassure users who invested in the altcoin project supported by Binance. As cryptokoin.com reported, the altcoin dropped more than 50% in the 24 hours after the rumors surfaced. According to data from Coinecko, BinaryX price was trading at $17.17 on January 25, 2022. However, the asset rallied in November when cryptocurrencies grappled with concerns over a possible FTX contamination. BNX price managed to see $171.34 this past month. However, as a result of recent claims, the price dropped from $126 to $64.66.
Whales profit from price volatility
Meanwhile, whales and other investors are benefiting from the high volatility in the Binance-backed altcoin. Accordingly, shorts profit from volatility at a high rate. Many traders are shorting the BinaryX (BNX) market, including “0xRajee” and crypto analyst “Elle”. In addition, PancakeSwap liquidity providers have withdrawn from the BNX market due to widespread fear and uncertainty. Cryptocurrency analyst King Crypto said that two PancakeSwap whales have withdrawn more than 20,000 BNX tokens. He then warned that the BinaryX price could drop further.
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