The BinaryX BNX token has fallen by over 50% in the last 24 hours following rumors of its developers selling treasury tokens.
Rumors surfaced earlier today that 4 million BNX was being dumped per hour on Binance alone. A crypto trader also asked the BinaryX team to answer questions concerning certain transactions.
All this generated panic within the BinaryX community as many speculated that the sellers were the token developers.
Short Sellers Profit
Several crypto short sellers have profited from the situation, with many averaging returns of over 300%.
Elle, a verified analyst on Tradingview, made over 900% profit, while other traders like 0xRajee also made substantial profits from shorting the token.
Meanwhile, due to the level of FUD surrounding the BNX token, liquidity providers on Pancakeswap have exited their positions. King Crypto predicted that holders of the metaverse-related token might face more pain as two whales have withdrawn over 20,000 BNX (over $2 million) tokens to sell.
BNX Price Rose 10X in Bear Market
Despite the bear market conditions, the BNX token has been one of the best-performing digital assets in the current year. Wu Blockchain reported that BNX rose more than ten times in this year’s bear market. For context, Bitcoin and Ethereum fell by over 50% over the same time frame.
According to CoinMarketCap data, the BNX token traded for as low as $17.17 on January 25 but spiked to a high of $171.34 in November -when the broader market and other digital assets dealt with the fears of a possible FTX’s contagion.
In the last 24 hours, BNX dropped by over 50%. The token fell to $58.25 from $126.
BinaryX Team Will Buy Back Token, Refutes Selling Rumor
According to the BinaryX team, rumors that it was selling the BNX token were untrue and that all of its projects were running smoothly.
The developers tweeted that they would buy back the token soon and are working on a detailed plan. The developers did not reveal the rate at which the tokens would be repurchased -the team told BeinCrypto to wait for the update.
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Source: https://beincrypto.com/bnx-price-tanks-on-rumors-of-binaryx-team-selling-treasury-tokens/