Matic Network crashed by over 70% in the blink of an eye yesterday and the community want answers amid accusations that the team dumped on investors.
The COO and co-founder of the Indian blockchain company, Sandeep Naiwal, answered community questions in an ask-me-anything (AMA) earlier today to address concerns over how over 280% of its gains made over a two-week rally were wiped out in the space of a few minutes yesterday.
Responding to accusations of foul play from angry token holders he said the following:
“I think the timing of this manipulative shorting was chosen in a way that our whole team was asleep because it was night time in India. It seems to be a coordinated attack.“
He went to say that he believed that market makers may have identified MATIC as a perfect cryptocurrency to short and that these big-money traders could possibly have coordinated multiple large short positions on different futures exchanges while at the same time selling many of its tokens.
Nailwal’s innocence in the matter has been backed up by Changpeng Zhao, CEO of Binance, the exchange with the highest MATIC trade volume.
Whether the MATIC network team knew about the dump in advance or not, questions must be asked about how the token could lose so much value in such a short space of time.￼
￼￼In spite of this, Nailwal believes that this event will become much less likely to occur again as the project matures.