Matic – an alleged competitor of bitcoin – has reportedly sunk into oblivion and lost most of its value in just a matter of minutes.
Matic: One of the Space’s Biggest Droops
This is something that many crypto enthusiasts get stuck dealing with in one way or another. After all, even mega currencies like bitcoin can fall unexpectedly. BTC dropped from more than $9,500 to about $8,100 in just a few minutes during late September following the dismal opening of Bakkt.
However, what makes Matic unique is just how much was lost. It is estimated that Matic may have shed more than 70 percent of its value in less than an hour, suggesting it’s one of the biggest downfalls to ever occur in the history of crypto.
It is unclear, at press time, why the currency dropped so heavily, though Changpeng Zhao – chief executive of Binance – has taken to social media to keep enthusiasts calm and clear-headed. He writes:
Our team is still investigating the data, but it’s already clear that the Matic team has nothing to do with it. Several big traders panicked, causing a cycle. Going to be a tough call on how much an exchange should interfere with people’s trading.
Co-founder and chief operations officer of the Matic Network Sandeep Nailwal has mentioned his team is looking into what could have caused such a dramatic change in the currency’s status. He explains:
We will post a detailed analysis and we will come out stronger than ever from this evident manipulation… It will be clear very shortly that we are not behind this, as some [fear, uncertainty and doubt] accounts are trying to insinuate.
It’s interesting that he automatically refers to the incident as “manipulation.” This is a word that isn’t used lightly in the crypto space, and when it is utilized, it’s because something major has happened.
One such example was in 2018 when bitcoin – the world’s leading cryptocurrency by market cap – fell from its all-time high of nearly $20,000 in December 2017 to just over $6,000 the following summer. University of Texas professor John Griffin issued a report claiming Tether – a popular, but controversial new stable currency – was being used to manipulate bitcoin’s price and potentially tie it to USD to ensure the asset rose consistently.
Relax! This Happens!
At the time of writing, Matic has seemingly incurred a slight recovery, and some are convinced this was just another run-of-the-mill drop and spike one tends to witness so often in this space. Alex Kruger – a digital currency commentator – stated:
What happened with Matic can happen to any token… It would be very surprising for it to happen to the large caps, but it can still happen. Adjust selling volume by market cap or order book liquidity, and presto. Hence why crypto is traders’ paradise and investors’ hell.