MATIC tokens worth millions were sent to Binance and Coinbase before a 30% drop, data reveals.
Blockchain data reveals that on Friday night, key market makers Jump Trading and Cumberland sent millions worth of Polygon (MATIC) to crypto exchanges, just before a nearly 30% drop in value.
Analytics firm Lookonchain reported 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. Another crypto wallet associated with Cumberland, Jump Trading, and Robinhood deposited a total of 9.4 million to crypto exchanges, according to the firm.
These deposits were most likely sold on crypto exchanges during a time of low liquidity, contributing to a sudden decline in the price of MATIC tokens. Similar price drops were seen in Cardano (ADA) and Solana (SOL) tokens, which fell as much as 25% in the last 24 hours.
These tokens were likely affected after being accused of being securities in multiple U.S. Securities and Exchange Commission (SEC) filings against crypto exchanges Binance and Coinbase earlier this week.
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As a result, cryptocurrency services firm Matrixport noted in a blockchain memo 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 warned.
Omkar Godbole contributed to the reporting.