GARI’s Recent Price Crash Looks A Lot Like What Happened To Polygon. Will History Repeat Itself?

History seems to be repeating itself for blockchain-based social media app Chingari, whose newly launched cryptocurrency token GARI recently fell by more than 80% after someone dumped millions of tokens onto a major crypto exchange, KuCoin. 

GARI’s sudden fall led to immediate panic among thousands of investors and users of Chingari’s token, with cries of foul play doing the rounds on Twitter until the real reason for the price crash was revealed. 

The event bears all the hallmarks of what happened to another top Indian crypto project in its early days, one that has since gone on to become a darling of the blockchain space. It was in 2019 that Polygon, then known as Matic Network, saw its MATIC token almost wiped out due to similar manipulation by whales. Back then, someone else followed the tried and tested “pump and dump” playbook to make themselves a quick profit. With sustained buying pressure helping to boost the price of MATIC in the preceding weeks, what followed was an immense crash as someone quickly took advantage. By selling all of their holdings at once, the whale was able to drop MATIC’s price by more than 70%. 

As always, there were the usual accusations of MATIC being a scam and the project’s creators engaging in a rug pull, but just as with GARI, it soon became clear that this wasn’t the case. Analysis of the blockchain showed that MATIC’s founders still retained the majority of their tokens, just as data from the Solana blockchain revealed that GARI’s founders have kept possession of most of their coins. 

The similarities between the two events bode well for investors in GARI who might be fearing the worst. Just like Chingari, Polygon launched its token in the middle of a bear market and everything was moving along nicely until… boom! The price crashed and the internet was up in arms. 

Polygon responded in what has since become a textbook reaction by legitimate projects to such events – it simply explained what happened, told everyone to keep calm, and quietly got back to work. Despite naysayers claiming otherwise, the Polygon ecosystem not only survived, but went on to quite literally thrive. Today, Polygon is one of the most recognizable names in the blockchain industry, having established itself as the primary scaling solution for Ethereum just in time for the next bull run. It’s all thanks to Polygon that Ethereum was able to scale to the degree necessary to support the most impressive gains in crypto history in 2021, with billions of dollars pouring into the DeFi space and hundreds of tokens all reaching incredible new all-time highs. 

Polygon itself was not left out. Its token price rose from less than two cents at the time of its 2019 crash to as high as $2.92 per token in December 2021. Even now, amid what has turned out to be a brutal crypto winter, MATIC has performed better than most. Admittedly being down more than 70% from its all-time high doesn’t sound that impressive, but compared to many other top tier tokens like SOL and AVAX, which are down more than 90%, it’s a pretty impressive achievement. According to Coingecko, Polygon’s MATIC is currently the 15th most valuable cryptocurrency in terms of market cap, while the project itself is thriving in areas ranging from DeFi to blockchain games and NFTs. 

GARI investors might be feeling the doom and gloom for now, but considering the similarities between it and Polygon – and the fact that Chingari is an incredibly popular and successful app in its own right – there’s every reason to think better days are just around the corner.