The Sudden Drop Of Kyber Network Price Makes The Community Bewildered

The market has been constantly influenced by economic data lately and the price of Bitcoin and altcoins is experiencing a historic September drop. Kyber Network (KNC) is also among them, but yesterday’s case of an unstoppable drop made the community worried.

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On September 18, the Kyber Network project also had an unexpected problem with the price reaction of KNC in the trading market, suddenly dropping by more than 30% in just a few minutes from about $1.9 to $1.255. The KNC price is trading at $1.346 at the time of writing.

KNC daily chart. Source: CoinCu

At the time of the incident, the majority of the community thought that Kyber Network was attacked as similar cases are often seen in the market, but in reality, this is not the case. According to Victor Tran – co-founder and CEO of the project, KNC’s plunge is simply an act of “discharge” from a whale.

This whale wallet transferred 5.5 million KNC tokens to the FTX exchange to take profits. Because the selling pressure is too great combined with the quite negative crypto industry conditions, it has led to panic among traders holding KNC, thereby triggering panic selling, and pushing the KNC price down further.

KyberSwap was also attacked about two weeks ago, although the damage was only $265,000 and the platform team quickly resolved it, the anxiety still remained with investors.

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One detail explaining why the mentioned whale wallet performed such a sudden sell-off is likely due to the fact that KyberSwap is a rare DEX that supports users to access and swap ETHW-related assets – split chain version of Ethereum Proof-of-Work after The Merge in 30 days.

Even so, the CEO of Kyber admitted that the token’s price loss of nearly 30% within an hour is extremely serious.

And whoever the “culprit” is is still unknown.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.