The Matic Network token (MATIC) suffered a devastating flash crash on Tuesday morning with a drop in price of more than 70%.
The slump in price comes after a two-week parabolic rise that saw it surge from $0.012 on November 22 to $0.042 on December 9.
The token’s most liquid exchange is Binance, with around $300 million being traded over the past 24 hours.
The exchange’s CEO, Changpeng ‘CZ’ Zhao, dispelled rumours claiming that the dump was caused by the Matic team.
“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,” he wrote on Twitter.
The co-founder of Matic Network, Sandeep Nailwal, reiterated CZ’s statements in a tweet of his own.
“Just woke up to this nightmare due to a distress call by someone,” he wrote.
“It will be clear very shortly that we are not behind this, as some FUD accounts are trying to insinuate. We will post a detailed analysis and we will come out stronger than ever from this evident manipulation.”
The token has remarkably bounced from the bottom of the crash, although it still remains more than 50% lower than it was yesterday.
The market cap of Matic has also slumped from more than $100 million to just $51 million.
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