Implosion: MATIC Erases Four-Week Rally in Just Two Days

The Matic Network cryptocurrency (MATIC) plunged significantly in the past 48 hours, erasing a four-week rally.

AccessTimeIconDec 10, 2019 at 7:27 p.m. UTC
Updated Sep 13, 2021 at 11:47 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Matic Network cryptocurrency (MATIC) plunged significantly in the past 48 hours, erasing a four-week rally that saw the alternative cryptocurrency appreciate by 280 percent. 

It was a brutal reversal for the scalability-focused blockchain project’s coin. As recently as Dec. 8, it traded against bitcoin as high as 570 satoshis ($0.04) from 150 “sats” ($0.01) in the first week of November, according to Binance data. 

Prices started losing altitude from 14:00 UTC on Monday. What initially seemed like a textbook technical correction due to overbought conditions turned into a full-blown sell-off with prices falling more than 67 percent (from 465 to 153 satoshis)  in just 120 minutes beginning midnight UTC on Tuesday. 

The exact reason for the selloff is not known. Binance CEO Changpeng Zhao tweeted that the MATIC team had nothing to do with the price drop and the crash was likely caused by panic selling by “big traders.”

Some investors, however, believe the selloff was caused by manipulative dumping. 

Bryce Weiner, founder of startup exchange Altmarket and a popular Twitter personality wrote a thread accusing the MATIC team of engineering a pump and dump scheme. Other traders believe the price drop was caused by the unlocking or release of around 248 million MATIC tokens by the team. 

Sandeep Nailwal, chief operating officer and co-founder of MATIC Network, trashed allegations of manipulation and assured investors that his team had nothing to do with the price drop. He backed up his claim in a tweet noting that a majority of tokens are still in MATIC’s foundation address and that the unlocking of the 248 million tokens in question was done in a staggered manner “so there is no large sell pressure on [the] community.”  The unlocked tokens amounted to just 0.25 percent of the total supply, MATIC’s official twitter account claimed.

Whatever the cause, MATIC’s rapid rise over the past two weeks is now all but gone.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.