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MATIC sell-off: major holders get rid of SEC-exposed asset

The US Securities and Exchange Commission provoked major altcoin crash

12.Jun.23 7:01 AM
By Shawn Highstraw


MATIC sell-off: major holders get rid of SEC-exposed asset

The US Securities and Exchange Commission (SEC) has come down hard on Binance and Coinbase in the past week. In the charges, the financial regulator has classified a large group of popular cryptocurrencies as securities. These trading platforms are not allowed to list securities without a license from the SEC. One of the mentioned coins is Polygon (MATIC), a layer-2 scaling network for Ethereum (ETH). Due to the fear caused by the SEC, MATIC tokens are being sold by large investors, Polygon whales.

This is evident from on-chain data from Lookonchain. One of these large investors is the institutional trading platform Cumberland, which has deposited 9 million MATIC tokens (current value: 5.3 million euros) on Binance, and this whale has deposited 5 million MATIC (3 million euros) on Coinbase. In total, according to the analyst, investors have already deposited 14 million MATIC on trading platforms, currently worth 8.2 million euros.

However, there are more whales. Another large investor has also moved 9.4 million MATIC tokens (current value: 5.5 million euros) to various exchanges. The transactions mostly took place just before the price collapsed on Saturday.

Unfortunately, this was also unfavourable for the price of the popular altcoin. MATIC has already dropped more than 40% last week but has risen by about 10% today.

Ironically, the receiving addresses in many of these transactions are those of Binance and Coinbase, the two platforms that the SEC has sued. This seems to be related to liquidity. It is currently not easy for large investors to sell large quantities of coins. This applies not only to bitcoin (BTC) but also to almost every other token.

Polygon is not the only cryptocurrency mentioned by the SEC in the charges against Binance and Coinbase. Solana (SOL), Cardano (ADA), and Binance's BNB Coin are among the others facing issues. In total, there are 61 coins listed on Binance and 13 tokens on Coinbase that are involved.

The Solana Foundation and the Cardano Foundation have already expressed their criticism of the SEC. Unfortunately, that was not enough for Robinhood. Starting from June 27th, it will cease support for SOL, ADA, and MATIC.

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