BNX, the token of BinaryX, the fantasy RPG project invested by Binance Labs, has dropped by more than 50%. Many suspect the project has sold off its tokens.
Rumors surfaced earlier yesterday that 4 million BNX was being dumped every hour on Binance alone. A crypto trader also asked the BinaryX team to answer questions regarding certain trades. In just 2 weekends, the price of BNX dropped by more than 50% (from 129 USD to 59 USD).
All this created panic in the BinaryX community as many speculated that the sellers were the developers of the token.
Profit of short sellers
Several crypto short sellers have profited from this situation, with many averaging over 300%.
Elle, a verified analyst on Tradingview, has made over 900% of profits, while other traders like 0xRajee have also made significant profits from short-selling the token.
Meanwhile, due to the level of FUD around the BNX token, liquidity providers on Pancakeswap exited their positions. King Crypto predicts that token holders involved in the metaverse may face more difficulties as the two whales have withdrawn over 20,000 BNX tokens (over $2 million) for sale.
BNX Price Rises 10x During Bear Market
Despite the bear market conditions, BNX is one of the best-performing digital assets of the current year. Wu Blockchain reported that BNX rallied more than 10x during this year’s bear market. By comparison, Bitcoin and ETH have dropped more than 50% in the same time frame.
According to CoinMarketCap data, the BNX token traded as low as $17.17 on January 25 but spiked to a high of $171.34 in November – as the market as a whole and assets Other digital players face concerns about the risk of spreading FTX.
In the 24 hours after the rumor broke, BNX fell more than 50% from $126, recording an intraday low of $58.25.
Team BinaryX will buy back tokens, refuting dumping rumors
There were rumors that the project was the “culprit” of discharging BNX, the community was angry and asked BinaryX to report the incident and publicly verify the wallet address. The project team posted a forum to calm down users, clarifying that no one in the team is selling BNX and the whole system is still running smoothly.
According to the BinaryX team, the rumor that they are selling BNX tokens is not true and all their projects are running smoothly.
“Our team will soon acquire BNX and are currently working on the blueprint. We have never sold any BNX. Because just like Cyber Heroes, we know that as long as we live, storms are inevitable and Cyber Heroes will be our invincible weapon for the next victory!” BinaryX’s tweets.
The developers tweeted that they will be buying back tokens soon and are working on a detailed plan but did not disclose the speed of the redemption.
BinaryX is a GameFi and IGO launchpad project invested by Binance Labs. The BNX token serves the main activities in the game and has increased in price 10 times right at the time of the market difficulties. Hodler BNX can participate in community governance as well as vote on important decisions. As of November 2021, BNX has a total supply of 21 million tokens and approximately 2 million BNX in circulation.