[Update: New math] Allegedly, Matic sent around $10 million of their supply to Binance, mostly for liquidation

Earlier today, the price of $MATIC dropped around 80% within 24 hours. People are now investigating as to why there was such a huge dump, and some think EtherScan records hold the answer.

Samuel JJ Gosling, Founder of Validity Crypto, posted a link to the Matic Foundation’s records, where they sent around $10 million (calculated at all-time high) to Binance addresses. On first look, the transactions lead to unknown addresses, but tracking them further shows that they were deposited, or possibly sold to known Binance 1, 2, 3 and 4 addresses.

There are 10 trillion Matic Tokens in circulating supply and around 300 billion were sent withdrawn from the foundation.

Matic and Binance’s response¬†

Sandeep Nailwal, Co-founder of Matic responded to Goslings post very critically.

“FUD account. We will post the exact numbers. This is complete BS, the out amount is from the smart contract lockup account to Foundation account. Amounts sent to Binance or any other accounts are in conjunction with our token release. Why would a project do this deliberately,” tweeted Nailwal

Changpeng Zhao, CEO of Binance backed up his claims.

“Our team is still investigating the data, but it’s already clear that the MATIC team has nothing to do with it. A number of big traders panicked, causing a cycle. Going to be a tough call on how much an exchange should interfere with people’s trading.” – @cz_binance

FUD is a term that Zhao is notorious for throwing around, and is short for ‘fear, uncertainty and doubt.’ Nailwal calling the linked address a “FUD account” implies that it is not theirs. If this is true, it is unclear how EtherScan picked the address up as the Matic Foundation.

MATIC is a low market cap coin, and if even $10 million worth of a coin that was worth $.05 was sold all at once, it might be able to initiate a crash around the magnitude of what happened today. Observers are waiting for Binance and Matic to come up with more evidence before there is a consensus of no foul play.

Update:

Gosling updated the math and it turns out that only 3% of MATIC supply was sent to Binance, closer to $10 million USD. Originally this post had published that it was $67 million.