A coordinated move by three whale addresses of BNX, the game’s native token on the BinaryX blockchain, caused the cryptocurrency’s price to drop by nearly 53% in 24 hours. Information Data monitoring platform on the chain LookOnChain.
The devaluation then began. In a short period of time, around 16:30 UTC on the fourth Sunday, three liquidity addresses pulled out of the pool. mask of the BNX-BUSD pair on the BNB Chain’s leading decentralized exchange, Pancake Swap (CAKE), has sent 15,832 units of BNX to addresses on Binance with the intention of selling them at the market price.
Dumping nearly $1.9 million into BNX immediately led to a 26% drop in the price of the token, which fell from $125 to $93 in a short period of time.
The decline was enough to cause panic among retail investors, who quickly unloaded their positions. The new eviction from another whale address has further devalued BNX, which has reached a local minimum of $58.45, as described by Lookonchain on its website. thread on Twitter.
5.
Pisces pulled 61.6 $BNX From the staking pool BNX-BUSD removed 14464.6 $BNX liquidity from #PancakeSwap.
Then he converted all 14,526 $BNX ($1.2 million) to # Finance 8 hours ago.
whose price fell $BNX From $84.1 to $57.1, down about 32%. pic.twitter.com/xJgNoN1XDJ
– Lookonchain (lookonchain) December 4, 2022
4.
The liquidation of these three addresses caused the price to drop from $125 to $93 in a short period of time, a decrease of about 26%.
This caused panic in the market and many retail investors started selling, causing the price to slowly drop.
–
5.
A whale pulled $61.6 BNX from the BNX-BUSD Staking Pool and removed $14,464.6 BNX from #PancakeSwap liquidity.
So he transferred 14,526 BNX ($1.2 million) to #Binance 8 hours ago.
As a result, the price of BNX dropped from $84.1 to $57.1, a decrease of about 32%.
– Lookonchain (lookonchain)
By late Monday morning, the 5th, the token had recovered to minimal losses, and was trading at $64.66, according to data from CoinMarketCap. It is still a long way from the local high of $171 recorded just 10 days ago.
BNX Economic Basics
in threadLookonchain analysts explained why the sale of only $3 million in BNX, which is not exactly a large volume for the cryptocurrency market, was able to cause the coin’s depreciation by more than 50% in the price of the token.
In extremely adverse conditions during one of the harshest winters on record, BinaryX’s native token, a blockchain game that received investment from Binance Labs, the financial arm of the exchange led by Changpeng “CZ” Zhao, saw an appreciation of nearly 1,000% while accumulating losses in Bitcoin. (BTC) up 63% in 2022.
BNX/USD Performance vs. BTCUSD in 2022. Source: CoinMarketCap
In January of this year, BNX was trading at less than $18; And on November 24, when most of the market was reeling from the fallout from the FTX bankruptcy, the BNX price reached its record price of $171 in 2022.
According to an analysis by Lookonchain, the weak economic fundamentals of BNX explain why the token was volatile over the weekend.
10.
Curiously, during the UST/LUNA and FTX/Alameda crashes, the price of $BNX It did not fall, but it was steadily increasing.
This likely means that the price $BNX It was controlled by market makers/project teams. pic.twitter.com/OAeioY0XnT
– Lookonchain (lookonchain) December 4, 2022
9.
The top 30 BNX holders hold a total of $6.06 million ($418 million), which is 98% of the total token supply.
$BNX tokens are concentrated in a few addresses.
#Binance owns about 2.3 million BNX ($157 million), which is 37% of the total supply and 86% of the circulating supply.
–
10.
Curiously, during the UST/LUNA and FTX/Alameda crashes, the price of $BNX did not fall, but continued to increase continuously.
This likely means that the price of BNX was controlled by market makers/project teams.
– Lookonchain (lookonchain)
Lookonchain’s analysis concluded that the 53% drop in 24 hours of sales adding up to $3 million could be explained by the lack of organic market demand for the token, which makes BNX whales able to manipulate its price for their own benefit:
“Buying/shorting/leveraging $BNX is a high-risk operation! The price of BNX can be withdrawn by market makers/project teams at any time, and it can also drop significantly due to selling whales at any time, like what happened last Sunday.” .”
The power of whales is able to decisively influence the price movement not only of tokens with a low market capitalization. As Cointelegraph Brasil recently reported, the MATIC whale caused the price of Polygon’s token, which is currently the tenth largest by market capitalization, to drop five times in the month of November alone by dumping a large amount of tokens for trading on Binance.
Read more