We posted yesterday Title About the drop in the price of the MATIC coin by more than 70 percent, which the MATIC management and team said they had nothing to do with what happened and was supported by the CEO of the Binance platform.

Therefore, we will approach the topic from another angle, an external angle, in which we will address some of the opinions of traders about the decline in the price of the currency (MATIC) by more than 70 percent.

After gaining 200% in just two weeks, one of the successful IEO projects “MATIC” on Binance lost 70 percent of its price.

Mr. CZ says his team is conducting an investigation into the sudden drop and stated that Matic’s team had nothing to do with the event that made so many investors lose money.

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As explained by Matic’s team in Posted in the official blog For the project that falling prices have nothing to do with it.

Matic had no part to play in all of this.

As for the token movement, we announced the release of approximately 0.25% (248 million) of the October opening tokens, which coincides with the aggregate external movement.

Enterprise tokens still exist.

Matic will bounce stronger than ever!

– matic (maticnetwork) December 10, 2019

While some traders and analysts gave their reasons for what happened, as follows:

One Twitter user explained that the unloading was triggered by the platform itself.

A previous post on the MATIC blog said they had already warned the community about a future outward movement, which makes up 2.5% of the total supply, and provided evidence from Etherscan.

Later this post was apologized and the management stated that it was a pure error that might cause fear and anxiety or what is known as FUD and the author apologized that the information provided was inaccurate.

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Are whales responsible for dumping the price of the MATIC coin?

In a tweet, “CZ”, the CEO of Binance platform, said that the price went down because many large traders panicked and caused big selling..

Crypto trader Thrillmex believes that what happened is the result of one of the big whales releasing all their stash coins to the market after which the small traders panicked and started selling.

Looks like a big whale dumping everything in the market followed by panic selling

– Rampage (Thrillmex) December 10, 2019

This trader also reminded the community not to risk more than they can afford to lose when investing in crypto.

One crypto analyst on Twitter @CryptoMichNL says the reason for the dump is the low liquidity of MATIC on Binance and the fact that the platform allowed margin trading on it and on similar coins, such as RVN.

We sincerely believe that margin entry on low-liquidity currencies like matic $ / RVN dollars It will only cause the currencies to fall more than usual.

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Spot wrote, there could have been a dump, but seeing the crazy wicks on it, I don’t think including the margin was a proper idea.

– CryptoMichNL December 10, 2019

Trader Scott Melker agrees with him, who also pointed out the low liquidity in MATIC is what caused the unloading process.

The dump we just saw matic $ It would probably be an example of what happens when you allow high leveraged trading of illiquid assets. This can cause a series of liquidations and stop losses resulting in a significant drop.

– Wolf of All Streets (scottmelker) December 10, 2019

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