Introduction
Blockchain data reveals that millions worth of Polygon (MATIC) tokens were transferred to crypto exchanges by key market makers, Jump Trading and Cumberland, on Friday night. This coincided with a subsequent 30% price drop, as observed by analytics firm Lookonchain.
MATIC Deposits to Binance and Coinbase
Lookonchain’s tweets on Saturday disclosed that Cumberland deposited 9 million MATIC tokens, equivalent to over $6.3 million, to Binance. Additionally, they sent 5 million MATIC tokens, worth $3.5 million, to Coinbase.
Deposits from Jump Trading and Robinhood
Another crypto wallet linked to Cumberland, Jump Trading, and Robinhood made cumulative deposits of 9.4 million tokens to various crypto exchanges.
Price Decline in MATIC Tokens
These deposits likely led to selling on the crypto exchanges, contributing to a sudden 30% price decline in MATIC tokens. Similar price movements were observed in cardano (ADA) and solana (SOL) tokens, which also fell as much as 25% within the past 24 hours.
Impact of SEC Filings
It is believed that these tokens were affected by recent allegations of being classified as securities in multiple U.S. Securities and Exchange Commission (SEC) filings against crypto exchanges Binance and Coinbase.
Expectations for the Weekend
Crypto services firm Matrixport issued a note to CoinDesk, warning that further selling of major tokens can be anticipated over the weekend due to the prevailing circumstances.
