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There are 10 trillion Matic Tokens in circulating supply and around 300 billion were sent withdrawn from the foundation.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

 

$MATIC just crashed harder than any coin has in a long time, and people are confused

Matic, a proof-of-stake based side chain network to Ethereum saw massive increases in price throughout the past month, then in 1 day, reverses all progress.

People were under the impression that alt-season might once again have been in fruition with coins like RVN, FETCH and MATIC at least tripling in worth since November. Unfortunately for buyers, those three coins and possibly more had the rug pulled from underneath them. These pairs are all traded on Binance’s leveraged exchange and one veteran trader, DonAlt, pointed out that they were some of the CEO, Changpeng Zhao’s favorites.

https://twitter.com/cryptodonalt/status/1204207941945090048

As I’m writing this, MATIC has bounced back to the top of it’s 200 day simple moving average, after plowing through the 50 day MA like it didn’t exist.

Some are saying that the owners of MATIC control 90% of the coins supply:

https://twitter.com/CryptoWelson/status/1204210798689542144?s=20

Since Binance users are able to short, or make money off of the price going down, some have turned this into profit. Others surely were either liquidated, stopped out or left with down to 25% of what they invested if they bought the top.

Matic creators Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun have not made any statements on Twitter about the coins sudden increase in price, or the drop.

I believe this is the quickest drop in price I’ve seen in a coin since I began observing the crypto space in early 2019. Many exchanges, including Binance, have features called a “stop loss” or “trailing take-profit” which automate the selling process for circumstances like this. I’m hoping this space has matured since 2017 and not many people have been harmed by this decrease in price.

One user on Reddit is already asking “Why is Matic crashing?” Here are some answers that people are giving:

“I’d imagine it’s because it had just gone parabolic. I have it in storage and sit long term, no worries for me.” – u/almondbutter

“Binance exchange hacked” – u/jdbaker82

Nobody can say yet the definite reason behind this sudden price action, but I’m sure more details and conspiracy theories will be voiced soon.

 

UPDATE: 

Reddit user u/McNeiltherealdeal is claiming to have lost $53 million.

 

Harvard Business Review’s new blockchain book portrays Bitcoin skepticism

Alex Gladstein, CSO of the Human Rights Foundation, posted a picture of the back of Blockchain: The Insights You Need from Harvard Business Review. The Harvard Business

Harvard Blockchain Book

Review text was pretty dismissive of Bitcoin and clearly favored other blockchain uses.

“While the world is transfixed by Bitcoin mania, your competitors are tuning out the noise and making strategic bets on blockchain for business,” read the book, implying that
Bitcoin is a mere distraction in the world of Blockchain.

Executive Director at zCash, Josh Cincinnati, replied with his two cents, “can confirm all business school takes on this will be terrible until it’s too late for them to be actually innovative.”

What type of blockchain tech is Harvard referring to? 

It’s no surprise that we at Cryptocult believe that Bitcoin will be around for a while, but having attended an IBM blockchain presentation, I can see where HBR is coming from. Blockchain is great for automation, and established companies can invest in that use cases without worrying about token economics.

From a financial standpoint, it can be more cost effective for a huge corporation to build a blockchain network themselves. These networks will allow them to cut costs on labor, servers possibly decrease shrinkage. The best part is they already have funds those expenses, so they won’t have to worry about creating a token and hoping that it appreciates in value.

The nodes for corporate blockchain networks are the corporations themselves, so whoever contributes most to block validation gets paid equitably. At the same time, they can impose fees so that whoever uses the network the most has to contributes for their usage.

There’s room for decentralized and centralized networks

Essentially, we agree that corporate blockchain tech has its uses, but don’t think that it directly competes with decentralized networks. IBM’s blockchain network requires permission unlike decentralized networks. So it’s not like any small business can become a node and participate in the network, which leaves out a huge demographic.

At the same time, the services that big corporations are interested in aren’t services that grassroots blockchain enthusiasts are demanding. Most of the appeal to decentralized networks are in finance and DeFi is chugging along at a steady pace, improving and making features more accessible.

In this situation, HBR’s dismissiveness of Bitcoin seems just as unnecessary as crypto enthusiasts defensiveness. Nobody knows what blockchain tech will look like 10 years from now. Bitcoin and corporate networks could be thriving in the future, or both be dead and gone.

BAT price pumps after Brave browser hits user milestone – people aren’t impressed

A good day for an alt coin is when they preform a tiny bit better than Bitcoin. Brave browser hit 10 million monthly active users, and people are claiming that the price of its integrated Basic Attention Token (BAT) pumped because of the news.

Here’s a comparison between BAT and BTC on the 15 minute chart today:

BTC v. BAT

BTC is at the top and BAT is at the bottom. I don’t know about you but I wouldn’t really jump for joy after seeing these results. Sure, BAT is a few more percentage points higher than BTC today, but it’s trading volume is $14 million dollars lower than a few days ago. In the typical altcoin fashion, volatility spikes mimic BTC almost as if they are the same asset.

With BTC volume sitting at $18 trillion and BAT volume at $46 million, it would be difficult that good BAT news could pump the BTC market. Usually, when BTC moves up, so do altcoins. Still, some Redditors on r/batproject are convinced that this move can be attributed to news about the Brave Browser.

“remember Bat token is one of the few tokens with a real use case via Brave and as such should grow as the Brave users increase,” said u/normanl29 on a post about the 4% price increase.

Surprisingly, most other comments on the post took the opportunity to point out how low the price is in the macro perspective.

“Yeah we saw what growth from 0 to 10M users did to the price…,” said u/punis1.

“thanks sold 100k,” u/coladh_samh responded.

Even Mike Dudas, who’s publication, The Block, reported on the increase of price mentioned that they haven’t found it to be worth entering the BAT system.

“Anecdotally, I’ve heard the payments are very low for publishers and users. We haven’t opted into the system, as it wouldn’t be material for us.,” Said Dudas.

Personally, I have tired using the Brave browser but on MacOS it seems to be lacking in many areas. There isn’t an easy to use PiP feature, battery life is worse than Safari, and when I turn on BAT rewards, video ads are sometimes a minute long or keep playing more ads until I refresh the page. I am the exact demographic who would love to support creators by donating BAT and wouldn’t mind running watching ads to earn money, but the browser keeps pushing me away, just like many others.

Research shows that Poloniex market share is trending downwards since Justin Sun’s acquisition

The Block, crypto research and news outlet, released statistics of Poloniex’s market share and it has begun to trend downwards since mid-November.

Poloniex Market Share
Credit: The Block

On November 13th, Justin Sun, founder of TRON and CEO of BitTorrent admitted to being part of the investment group that acquired Poloniex from Circle. This is almost exactly when their market share began to trend downwards.

On one hand, the decrease in users could have more to do with a change in management rather than Sun’s involvement. Even when my local taco place said “under new management,” I had this instinctual urge to never go back, because I liked how it was.

On the other, Justin Sun has an unquestionably controversial reputation because of the impression that TRON is more centralized than they advertise to be, he started a fund to censor journalism and kicked DigiByte’s coin off of Poloniex a day after the founder criticized the exchange.

Immediately after the acquisition, Poloniex purchased TRONs most popular “decentralized exchange.” People joked that you can’t buy a decentralized exchange, but in a recent piece, we clarified that even in DeFi there is no truly decentralized institution. This month, Poloniex also said that there would be no listing fees for any TRON based assets.

Here’s Justin Sun essentially thanking his one company for helping his other out:

Obviously, people who are media trained and keep up with the crypto space daily will understand that Sun is playing 4d chess with all of his businesses. That might be the reason why their market share had started decreasing so quickly. The exchange still might have a fighting chance in the future if they play their cards right.

Now that Sun has merged his projects together, it might be best for Poloniex’s market share to just stop talking about TRON. Eventually, new people will enter the space and others will forget about the affiliations.