The MATIC Network has been in a strong bull run for the past 2 months and has surged over 300%. Yesterday, the digital asset experienced a huge crash in basically just one hour and went from around $0.042 to a low of $0.011 although it has now recovered a bit and it’s trading at $0.02.
This move was so sudden and big that MATIC had to release an official announcement about it. In the blog, the team denies being responsible for the recent crash. Even the CEO of Binance made an announcement stating that they will be investigating the situation.
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. https://t.co/wOVF6tEBkQ
— CZ Binance (@cz_binance) December 10, 2019
Investors are clearly not happy and they are calling the digital currency a pump and dump.
This could be a new trend. Slow and steady pump followed by a spectacularly insane dump. And not only that, this was actually more of a dump and pump. Notice how it dropped so quickly causing panic selling and stop loss triggers all the way down to almost 150 and then quickly shot back up well above 200 as soon as the whales found a ridiculously low re-entry point.
Said a user on Reddit. Either way, despite the huge dump, Matic is still up around 20% in the last month and almost 570% since May 2019. The daily chart definitely looks funky now and a lot of investors might have lost confidence in the digital asset.