Polygon’s MATIC Token Takes a 30% Dive: Investors Lose Millions!
- Polygon market makers Jump Trading and Cumberland sent millions worth of MATIC to Binance and Coinbase before 30% drop.
- Analytics firm Lookonchain reports 14 million MATIC deposited on crypto exchanges by Cumberland, Jump Trading, and Robinhood wallets.
- Illiquid environment and alleged securities status of MATIC tokens may have contributed to sudden price decline.
Jump Trading and Cumberland sent millions worth of Polygon (MATIC) to crypto exchanges, as revealed by blockchain data.
Specifically, Cumberland deposited 9 million MATIC, worth over $6.3 million, to Binance and 5 million MATIC, worth $3.5 million, to Coinbase. A crypto wallet related to Cumberland, Jump Trading and Robinhood also deposited a cumulative 9.4 million to crypto exchanges. This information was shared on Twitter by Lookonchain, an analytics firm, in multiple tweets on Saturday.
These deposits were made just before a nearly 30% drop in Polygon tokens, which were likely sold on crypto exchanges amid an illiquid environment. This contributed to a sudden price decline in not only Polygon tokens, but also cardano (ADA) and solana (SOL) tokens, which fell as much as 25% in the past 24 hours. It is important for investors to be aware of the volatile nature of the cryptocurrency market and to exercise caution when making investment decisions.
The tokens were likely impacted after being alleged as securities in multiple U.S. Securities and Exchange Commission (SEC) filings against crypto exchanges Binance and Coinbase earlier this week. This highlights the increasing scrutiny and regulation of cryptocurrencies by government bodies. As such, investors should stay informed about developments in the regulatory landscape and take appropriate measures to mitigate risks.
The sudden movement of millions of dollars worth of MATIC tokens by key market makers contributed to a sharp decline in MATIC tokens, as well as other cryptocurrencies. This news underscores the importance of being vigilant and informed when investing in cryptocurrencies, especially given the current regulatory environment. Investors should exercise caution and do their own research before making any investment decisions.
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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