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MATIC COO: Latest dump might have been a reputational attack

Sahana Kiran

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Source: Unsplash

The Matic Network’s MATIC token broke Crypto-Twitter recently after its price plummeted by about 70.75% in just three hours. Following the same, a lot of people suspected foul play, with the founder of a cryptocurrency evaluation platform, Validity, Samuel JJ Gosling, alleging that the platform had sent over 1.5 billion tokens worth $70 million MATIC over the last fifty days. He also alleged that it was sent to Malta-based cryptocurrency exchange, Binance, for liquidation. Matic’s Co-founder and Chief of Operations, Sandeep Nailwal, recently appeared in an interview with CryptoWendyO to address the same.

While many claimed that the funds transferred to Binance were about 15 percent of the supply, Nailwal asserted that these tokens were still there and hadn’t been moved. On the contrary, others claimed that the dump was a result of the MATIC token release which was to move about 2.5% of the total supply, around 248 million tokens. Nailwal went on to say that despite this, there were still a total of 1.2 billion tokens left in the foundation.

Nailwal added,

“So that’s why like people did not see what is in what is out. And this is actually one FUD account and that’s why we feel that that FUD account was most likely associated with the discoordinated dump that happened or something like that.”

Backing his statement, Nailwal suggested that the account conveniently ignored and screenshotted the same, displaying the small transactions only which would make people believe that there are many. He further stated that if one aggregated the same, they are in conjunction with the amount that the foundation has communicated about being dispersed.

Additionally, while addressing the 1.5 billion tokens transferred over the past 50 days, Nailwal added that they were going stay put and would be mostly used for staking contracts.

Furthermore, many even alleged that the foundation was selling the funds. Addressing the same, Nailwal pointed out that a foundation with a reputation of Matic wouldn’t do such a thing as it is an adoption-centric project. “Why would we commit this kind of suicide? This does not make any sense,” Nailwal said while highlighting that if the project intended to mess with the selling, they would ensure that the price would go up, rather than down. He added,

“But I think it’s more of a, you know, maybe a reputational attack, I don’t know, but it looks like more in terms of profiteering by using these short positions on the future exchanges.”

Despite the entire process being a tough one, Nailwal also claimed that he believes that the network had come out stronger.

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Sahana is a full-time cryptocurrency journalist at AMBCrypto. A graduate in Political Science and Journalism, her writing is centered around regulation and policy-making regarding the cryptocurrency sector across geographies.

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