MATIC Faces Risk Of Massive Selling After Being Attacked By SEC

Key Points:

• MATIC, after being mentioned by the SEC in the lawsuit against Binance and Coinbase, has suffered a serious drop.
• Robinhood’s delisting announcement also exposes the token to the risk of a sell-off before June 27.

According to 0xScope monitoring data, more than 22.52 million MATICs have been transferred from the Robinhood platform address controlled by Jump in the past 24 hours, of which 19.22 million MATICs (approximately 14.3 million US dollars) were transferred to Cumberland and B2C2 Group address, and eventually integrated into Binance and Coinbase.

Bloomberg reported on May 10, as U.S. regulators crack down on the crypto industry, Jump Trading’s digital asset division, Jump Crypto, is withdrawing from the U.S. market but still plans to expand internationally. This could be Jump’s defensive action against the MATIC sell-off wave that followed the Robinhood delist announcement.

Robinhood, a fintech and cryptocurrency company, earlier indicated that Cardano (ADA), Solana (SOL), and Polygon (MATIC) would be delisted on June 27, 2023. This move comes after the publicly traded business indicated that it was actively examining its currency listings in the aftermath of recent SEC enforcement proceedings against Binance and Coinbase.

If Robinhood customers do not sell or transfer their token holdings by the deadline, the assets will be sold at fair market value.

As Coincu reported, Robinhood users holding ADA, MATIC, and SOL valued around $583 million who were compelled to sell before June 27 might be one of the primary causes of the market’s significant downturn over the following three weeks.

“After the deadline, any ADA, MATIC, and SOL still in your Robinhood Crypto account will be sold for market value, and the proceeds will be credited to your Robinhood buying power,” Robinhood stated.

This is the main reason leading to the result of MATIC being sold off in the market. In the past 24h, the token has dropped more than 24%.

Prior to that, the trading company Cumberland grew 14 million MATIC into the exchange in the past 16 hours.

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

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