Categories: Altcoin News

Matic Network: Ethereum Developer Disproves Rumours of MATIC Dump Being an Insider Job

Matic Network (MATIC) experienced a major jolt today as it is got dumped in massive amounts on the cryptocurrency exchange Binance, thereby losing 60% of…

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Matic Network (MATIC) experienced a major jolt today as it is got dumped in massive amounts on the cryptocurrency exchange Binance, thereby losing 60% of its value. Soon after the dump, rumours of the dumping being an insider job began to mushroom in the crypto market. But, an Ethereum developer, known as Eric.eth has disproved the rumors.

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A Nightmare Come True

It is not unusual for projects to gain and lose in double digits in a single day in the crypto sphere, but for MATIC network, the day has been a nightmare come true. From being at 0.041 in the wee hours of December 10, to falling to 0.011, the coin lost over 70% of its value in just a few hours.

The co-founder and COO of Matic Network, Sandeep Nailwal, tweeted about the disaster and published a blog, saying that the Matic Network’s team had nothing to do with the event, and it is some FUD account which is behind this. He also said that the Matic Network will post a detailed analysis of what happened.

Ethereum Developer Disproves Rumours

Rumors around what could have caused the dump are circulating in the market, and one of the theories is that the dumping was an insider job. Founder of Validity Crypto, Samuel JJ Gosling insinuated that the Matic Network team had been responsible for the dump. He said that the hat the Matic Network Foundation had transferred 1,495,322,715 MATIC, which made up for 15% of the supply, in the past 50 days, and the tokens had landed upon Binance for liquidation.

However, the theory was proved false by Ethereum developer, Eric. He posted how the Matic Network had sent only 290,000,000 MATIC to Binance and not 1,495,322,715. He also shared the details of the transaction history.

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Soon after that, Gosling also corrected his claims and apologized to the Matic Network and the crypto community.

The Matic team has also responded on the issue of the token transfers on Twitter and in a blog. First, Sandeep Nailwal responded on Gosling’s thread saying that his analysis was wrong. In the transaction of 1.4 Bn MATIC, 1.08 Bn MATIC transaction was a transfer of MATIC from smart contract lockup account to foundation account.

There was a tweet reiterating the same from the official Matic Network account as well. The foundation account tokens were still with the team, and only the transfer of 248 million tokens coincided with the net outward movement.

CZ Extends Support For Matic Network

Binance CEO Changpeng Zhao aka CZ, has also extended his support for Matic Network. He tweeted that his team was investigating the data, but it is already clear that Matic Network had nothing to do with it. It could’ve been that a number of big traders panicked and started selling off, creating a cycle.

When a crypto community member asked how it was clear just a few hours after the dump that Matic Network’s team wasn’t involved in this, CZ responded that they had come to this conclusion by looking at high impact/profit/loss accounts, and checking on the accounts that could be identified – i.e. people who had been trading on Binance for a long period of time, VIP accounts, etc.

To keep track of DeFi updates in real time, check out our DeFi news feed Here.

Vinnie Singh

All things Blockchain & Crypto. 3 years for writing for Crypto Publications, ICOs and Blockchain cos. Book Junkie. Travel Freak. Food rules my mood. Enough said. Follow me on twitter @vinniesingh7 or mail me at vinnie[at]squadx.io

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