Chicago-based cryptocurrency trading firm Cumberland recently initiated a massive transfer of Polygon’s native cryptocurrency, MATIC, to two leading exchanges, namely Binance and Coinbase. This move by Cumberland involved a staggering $9.8 million worth of MATIC tokens, as confirmed on June 10.
Data from the web3 analysis platform, Lookonchain, reveals that Cumberland executed this transfer over seven hours, with 9 million MATIC tokens, valued at $6.3 million, being shifted to Binance, and an additional 5 million tokens, estimated at $3.5 million, transferred to Coinbase. To accomplish this, Cumberland divided the funds into six smaller transactions, ranging between 1.5 million and 2 million MATIC tokens each.
Cumberland’s decision to move a significant amount of Polygon tokens coincides with substantial transfers by other whales and institutions. In fact, during the same period, another whale reportedly deposited 9.4 million MATIC into Coinbase and Binance, further suggesting a potential trend of dumping by influential holders.
Adding to the growing unease, Whale Alert, a prominent crypto transaction tracking service, reported a noteworthy transfer of 46,908,173 MATIC tokens, equivalent to around $32,595,499, from Binance.US to an undisclosed wallet. This development has heightened uncertainty surrounding Polygon token market dynamics and the actions of influential token holders.
Cumberland’s Matic Token Transfer Triggers Market Turmoil Amidst Whales And Sec Crackdown
The influx of MATIC tokens onto exchanges by these entities has significantly impacted the token’s price, leading to a staggering 29% decline within the period above. The substantial selling pressure generated by these deposited tokens caused the price of MATIC to drop from its initial trading value of $0.7882 to $0.5583, according to CoinGecko data.
Many industry observers attribute the ongoing turmoil in the cryptocurrency sector to the recent crackdown by the U.S. Securities and Exchange Commission (SEC) on Binance and Coinbase. The regulator has filed lawsuits against both exchanges, accusing Binance and its founder Changpeng Zhao (CZ), of violating securities rules and misleading investors. Furthermore, the SEC alleges that Coinbase operates as an illegal exchange.
In its crackdown, the SEC identified several cryptocurrencies, including MATIC, Solana (SOL), and Cardano (ADA), as unregistered securities. These developments have created a climate of uncertainty and further exacerbated the challenges that MATIC and other affected cryptocurrencies face.
Cumberland’s significant transfer of $9.8 million worth of Polygon tokens to Coinbase and Binance, combined with the actions of other whales, has resulted in a substantial decline in MATIC’s price. The ongoing regulatory crackdown by the SEC on Binance and Coinbase has added to the volatility and uncertainty in the crypto market, further impacting MATIC’s market dynamics.
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