Millions in Polygon’s MATIC Tokens Were Sent to Binance and Coinbase Ahead of 30% Slide, Data Shows
“Altcoins can crash this weekend even more as trading volumes are thin and market makers such as Binance have become less active,” one crypto firm warned.
Jun 10, 2023 at 7:23 a.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/KKMDE7Y3XJBKPP6DGYHMNH33CQ.jpg)
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Millions worth of polygon (MATIC) appeared to be sent by key market makers Jump Trading and Cumberland to crypto exchanges on Friday night ahead of a nearly 30% drop, blockchain data shows.
Analytics firm Lookonchain said in multiple tweets on Saturday that Cumberland had deposited 9 million MATIC, worth over $6.3 million, to Binance and 5 million MATIC, worth $3.5 million, to Coinbase.
The firm added that another crypto wallet related to Cumberland, Jump Trading and Robinhood deposited a cumulative 9.4 million to crypto exchanges.
These deposits were likely sold on crypto exchanges amid an illiquid environment, contributing to a sudden price decline in MATIC tokens. Similar price movements were seen in cardano (ADA) and solana (SOL) tokens – which fell as much as 25% in the past 24 hours.
The tokens were likely impacted after being alleged as securities in multiple U.S. Securities and Exchange Commission (SEC) filings against crypto exchanges Binance and Coinbase earlier this week.
As such, crypto services firm Matrixport said in a note to CoinDesk that further selling of major tokens can be expected over the weekend.
“Altcoins can crash this weekend even more as trading volumes are thin and market makers such as Binance have become less active,” the firm said.
Omkar Godbole contributed reporting.
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