The MATIC token suffered a price drop of 70% in a few minutes

One of Binance Launchpad’s successful IEOs, MATIC, exceeded a drop of 70% in price. MATIC tokens are trading at 95% on Binance, which means that a dump on the platform will affect the significant price.

MATIC Network was one of the most successful initial offers of Binance, and the token price had increased by 200% since launch.

Crypto analysts have speculated on the reasons that could cause such a sharp decline. One of the reasons was the MintFlint airdrop.

The crypto project announced that it will use the MATIC blockchain as a scaling solution and distributed Flint tokens to MATIC holders. Stillman analyst explained twitter:

Current theory on MATIC: They made a shitcoin airdrop today, then the usual liquidation took place. But for the first time I had margin tranding transactions on a liquidity market on Binance, which caused a cascade. Other currencies such as RVN were hit 30 minutes later, indicating a spreading effect. “

MATIC tokens – pump and dump

A second reason is that 99% of the available MATIC tokens are owned by only a few addresses, which would result in massive manipulation if there was a coordinated liquidation. Any order to sell them would automatically lead to a massive drop in price.

Other crypto traders like “Welson” called it one pump and dump massive:

“This is why it’s never a good idea to FOMO for a shitcoin, especially when the owners have 90% of the offer. After they manipulate the prices at a high level, they will sell everything and the buyers will be left with the responsibility of keeping the cryptocurrency alive ”.

Price charts reveal a perfect example of pump and dump in crypto markets. In the last two weeks, MATIC has increased by 175%, from $ 0.015 to $ 0.041. Over the past 24 hours, the price of the token has dropped from $ 0.041 to $ 0.011, the equivalent of a dump of about $ 60 million.