Coinbase backed Matic token is currently bleeding 51.45 percent of its value within the past 24hrs, which has severely affected Matic holders. “Crypto community members allege that the token holders basically became 1% poorer every 15 seconds for 30+ minutes in a row”.
If you are an active crypto community member and have been following Matic-related tweets on Twitter, you must have also noticed the long debate over Matic token’s declining price as well as few statements by team backing it.
It appears that the inaccurate claim by Samuel JJ Gosling, founder of a self-governing cryptocurrency evaluation platform, Validity over Matic tokens frightened crypto community members, many of whom are likely Matic, token holders.
The claim stated that the Matic Network Foundation had transferred 15% of the supply, i.e., 1,495,322,715 $MATIC token in the past 50 days. In fact, reports also alleged that a certain portion of such amount has also been sent for liquidation at Binance.
Just did some snooping around to find that the #Matic Network Foundation has transferred 1,495,322,715 $MATIC (15% of the supply, approximately $67,314,942 at ATH) in the past 50 days, of which from seems to have been sent for liquidation at #Binance. https://t.co/FLPl4HyfiO pic.twitter.com/dpYG8rMoHX
— Samuel JJ Gosling (@xGozzy) December 10, 2019
As soon as the analysis surfaced on social media, Twitter, founders of Matic Network as well as Binance boss Changpeng Zhao (CZ) gave the brush-off to these allegations. In fact, one of Matic’s founders, Sandeep Nailwal, hit back and pointed these allegations as “complete BS (Bullshit).” He called it “FUD account” and went on to say;
We will post the exact numbers. This is complete BS, the out amount is from the smart contract lockup account to Foundation account, said Mr.Nailwal. Amounts sent to Binance or any other accounts are in conjunction with our token release. Why would a project do this deliberately?
Despite this, “Samuel JJ Gosling” remained stiff-necked on his analysis until Eric (who by his Twitter profile involved with EthHub, a platform that provides research and resources to learn about Ethereum) disclosed “actual facts” that barely require any explanation. Eric revealed that the actual movement was about ~290,000,000 MATIC to Binance NOT 1,495,322,715”.
The idea was never to destroy or hurt the project, it was simply to debrief the situation, I issued an apology and the corrected the legitimate amounts.
I am sorry, there is not much else I can say, I will be more intuitive in my future claims.https://t.co/ghZxnFrKUz
— Samuel JJ Gosling (@xGozzy) December 10, 2019
What’s more interesting is that the man who shared “data about Matic with billion figures” acknowledged his mistake and quickly asked an apology for an inaccurate claim. He concedes his fault of claiming the movement of 15% Matic supply and said that it was only 3% of supply that seems had been liquidated.
I made a miscalculation and included inputs as well as outputs in my computation – wrote Samuel JJ Gosling.
Before Samuel’s apology on an inaccurate claim, the topic got the attention of Binance CEO Changpeng Zhao (CZ), who quickly reassured users that the team MATIC has nothing to do with it (token transfer). He tweeted as follows;
Our team is still investigating the data, but it's already clear that the MATIC team has nothing to do with it. A number of big traders panicked, causing a cycle. Going to be a tough call on how much an exchange should interfere with people's trading. https://t.co/wOVF6tEBkQ
— CZ Binance 🔶🔶🔶 (@cz_binance) December 10, 2019
Despite CZ and Matic’s founder’s quick response to an allegation, few community members beg to differ with their explanation. Furthermore, few community members questioned CZ on how can he be so confident that MATIC has nothing to do with it while it appears “it was likely only one trader (or small group) orchestrating ~all of this if you looked at the behavior of the order book.” Nevertheless, as per Alexandre Dreyfus, the founder of the sports and entertainment blockchain firm Chiliz, “it is clear because Binance can check Matic Wallets inside Binance.”
Moreover, few also stated that the official community Channel of MATIC on Telegram became restricted, refraining members from sending messages. In a nutshell, Mr.Nailwal defies various claims which were made on “MATIC token transfer” and elaborated;
You dint do an analysis. 1.4bn tokens you quoted, 1.08 bn txn is a transfer from smart contract lockup account to foundation account You counted it in total movement of tokens. Rest moved tokens are as communicated. Screenshot is also misleading We are posting in detail about it.
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