Binance’s IEOs keep Dumping, but why?

[Malam90]

Binance is facing yet another criticism as one of their IEO tokens has seen a huge dump once again. Matic, which was put on Binance launchpad, Binance’s version of an IEO, fell 60% in just minutes.

The token which is on the Ethereum network saw the huge drop. Coinmarketcap data said that MATIC/BTC reached a high of 562 satoshis on Monday, before diving to lows of just 195 satoshis.



Matic were forced to write a blog post to their investors and supporters explaining the situation. They also had to answer strong claims that they were behind the dump and had duped unsuspecting investors.

The blog post said:

“We want to strongly state that the allegations of token movement from our Foundation account, made by a FUD account against Matic team are completely baseless.”
 
Unsurprisingly, Binance CEO, Changpeng Zhao was quick to refute the inside job accusations too. Matic was one of the first tokens to raise funds on Binance Launchpad, so this is yet another PR disaster for Binance, in what has been a rough year for the company.

On the Matic issue, CZ said: “Our team is still investigating the data, but it's already clear that the MATIC team has nothing to do with it.” He went on to blame bagholders for the volatility:

“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.”

Many articles had previously been praising binance and their launchpad for the apparent success of the IEO and how the tokens listed all appeared to be pumping. A Cointelegraph article pasted in November asked: “Why Are Binance IEOs Starting to Pump?”

Well, it's funny what a difference a few weeks make a now it appears many are dumping, and fast. This Matic incident is not the first time a huge dump has happened to a Binance Launchpad token. Fetch.AI (FET) saw a big dump after its listing, as did many other tokens.

Celr another prominent token on Binance launchpad also saw a significant drop in price. The list i vergrowing. Is Binance really the best path to take?

This Matic data would suggest not and the questionable nature around this latest dump calls into question the trustworthiness of the company and Binance. This not being the first time, especially as Binance saw themselves drop out of the top ten of most trusted exchanges last month. The signs are clearly presenting Binance and those associated in a bad light. Let’s see if this Matic scandal is a big anomaly or more tokens from Binance launchpad take a similar path.

The reason behind IEO tokens dump are the recent dump of BTC and ETH markets. If BTC price falls, automatically altcoins price falls and it is normal process of the  crypto market trend. From the beginning of November, Matic price got huge pump and after pump price may fall slightly and becomes regular compared to the beginning of November for Matic price according to your Matic chart. Here i don't find any fault of Binance rather Matic team should show more performance hence.

[1715029069]

1715029069

[1715029069]

1715029069

[1715029069]

1715029069

[1715029069]

1715029069

[Oneandpure]

Binance is facing yet another criticism as one of their IEO tokens has seen a huge dump once again. Matic, which was put on Binance launchpad, Binance’s version of an IEO, fell 60% in just minutes.

The token which is on the Ethereum network saw the huge drop. Coinmarketcap data said that MATIC/BTC reached a high of 562 satoshis on Monday, before diving to lows of just 195 satoshis.



Matic were forced to write a blog post to their investors and supporters explaining the situation. They also had to answer strong claims that they were behind the dump and had duped unsuspecting investors.

The blog post said:

“We want to strongly state that the allegations of token movement from our Foundation account, made by a FUD account against Matic team are completely baseless.”
 
Unsurprisingly, Binance CEO, Changpeng Zhao was quick to refute the inside job accusations too. Matic was one of the first tokens to raise funds on Binance Launchpad, so this is yet another PR disaster for Binance, in what has been a rough year for the company.

On the Matic issue, CZ said: “Our team is still investigating the data, but it's already clear that the MATIC team has nothing to do with it.” He went on to blame bagholders for the volatility:

“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.”

Many articles had previously been praising binance and their launchpad for the apparent success of the IEO and how the tokens listed all appeared to be pumping. A Cointelegraph article pasted in November asked: “Why Are Binance IEOs Starting to Pump?”

Well, it's funny what a difference a few weeks make a now it appears many are dumping, and fast. This Matic incident is not the first time a huge dump has happened to a Binance Launchpad token. Fetch.AI (FET) saw a big dump after its listing, as did many other tokens.

Celr another prominent token on Binance launchpad also saw a significant drop in price. The list i vergrowing. Is Binance really the best path to take?

This Matic data would suggest not and the questionable nature around this latest dump calls into question the trustworthiness of the company and Binance. This not being the first time, especially as Binance saw themselves drop out of the top ten of most trusted exchanges last month. The signs are clearly presenting Binance and those associated in a bad light. Let’s see if this Matic scandal is a big anomaly or more tokens from Binance launchpad take a similar path.

Little confused with IEOs investor on Binance, last four time of Binance IEOs coins always have lower price from Matic until Perlin IEOs coin but when Binance trying for opening new IEOs coin always have investor enthusiastic want to buy IEOs on Binance, they are not remember last track record of IEOs coin Binance have been scam with lower price.

[Sithara007]

I don't know how you can blame Binance for this. The users need to remember that Binance is just a platform and the exchange rate is solely dependent upon the demand-supply balance. Some of the users may argue that Binance should intervene and prevent dumping of the tokens. But since cryptocurrencies are not decentralized, this is not a practical solution. If Binance puts restrictions on the dumping, then the traders will just move to other exchanges (especially the DEX sites) and dump their tokens at even lower rates.

[silversurfer1958]

After what Binance has done for past 6 months, this will be no big deal for them!

But the important thing is that this manipulation is not recommended for a big exchange like this. A lot of people lost a lot of money because of matic growth and they lost everything after 1 hour. This may be due to CZ and his team manipulating it, because previously the data showed that there were a lot of people making Long orders and the Matic dump would bring a lot of profits to them. I think Binance is not really a good exchange anymore, they are in a position to make the speculators lose more money.

[Eugenar]

Not all IEO Binance fail like matic. After all, the risk of investing in IEO is very high so if something like this happens we have to ready to face it.
Do not blame Binance completely. In my opinion in this case of matic dump prices which the developer has to blame, because the proof is some
other IEO binance can be successful. We don't need to blame each other related to this case, it is better to make it a lesson so that later on if
you want to invest, use money that we can afford to lose. So if your plan fails, like Matic cases won't be too big of a problem.

Actually, there is a correlation why certain projects picks binance to launch their IEO's with, there is an impact that binance could provide these project to be successful. With that, we can clearly say that it is not just the project to be blame but there is some flaws binance could also did to influence how the market of these projects are going down. But for us to understand, the greater responsibility of keeping the project right on track is weighing on the side of the developers, and the support given by binance or the exchange itself don't really impact that most.

[nicolas1979]

Binance and developer doesn't have enough capability to get investor trust. ICO, IEO and STO is similar program with the same purposes, collect fund and member for next step, make market. I see whales in this situation because to dump in high quantity only can be done by people like them and look's Binance/ developer doesn't enough preparation about this. Exchange/ developer want the project keep going but when whales playing this is the result, dump in high quantity without reward.

[Trela]

Everything has warned long ago. If you are interested in ICOs and IEOs, and you really want to invest in these projects, you should understand that both are mostly the same. The risk is still there, and the manipulation of the rich always exists, waiting for the prey to come and eat.

Ideally, for those who still want to invest in IEOs or ICOs, I think you should stop investing in IEO or ICO at the moment if you do not want to grieve because of the enormous losses that can occur unless you are sure of the profits in hand.

[Landak]

I'm not a fan of Binance Initial Exchange offering (IEO) but this dumping happen to Matic is very hurt specially if you are holding matic well if you take a look the chart history of matic in the past you will noticed a good run for this altcoin, but always remember not all the time the altcoin will stay on the top.

well I'm also not a fan of the IEO binance.
and this dumping Matic really shocked me, suddenly in an instant it fell so badly it looked like deliberately manipulating (my guess). Or this possibility happened because the holders sold the whole Matic due for Christmas and new year.

My doubts about IEO like there is also a point, yes initially it might be profitable if you decide to sell the coins when at the highest price, your investment should have returned (ROI). a big market with a good reputation cannot guarantee that everything will be good. after this, IEO investors should start being careful again in the future.

[Pamadar]

Binance and developer doesn't have enough capability to get investor trust. ICO, IEO and STO is similar program with the same purposes, collect fund and member for next step, make market. I see whales in this situation because to dump in high quantity only can be done by people like them and look's Binance/ developer doesn't enough preparation about this. Exchange/ developer want the project keep going but when whales playing this is the result, dump in high quantity without reward.

No one can anticipate how whales will be moving, not even the exchange owners will able to manage whatever directions they wanted the project will
proceed. IEO's which being catered inside binance only have the advantage for  sure listing but other than that the management don't have anything to
do if what the team and the supporters wanted for the token they are working with.

[luckyflop]

I'm not a fan of Binance Initial Exchange offering (IEO) but this dumping happen to Matic is very hurt specially if you are holding matic well if you take a look the chart history of matic in the past you will noticed a good run for this altcoin, but always remember not all the time the altcoin will stay on the top.

well I'm also not a fan of the IEO binance.
and this dumping Matic really shocked me, suddenly in an instant it fell so badly it looked like deliberately manipulating (my guess). Or this possibility happened because the holders sold the whole Matic due for Christmas and new year.

My doubts about IEO like there is also a point, yes initially it might be profitable if you decide to sell the coins when at the highest price, your investment should have returned (ROI). a big market with a good reputation cannot guarantee that everything will be good. after this, IEO investors should start being careful again in the future.

Although Binance has informed Matic's status, they say that there is no manipulation here. But I couldn't believe that the price could collapse 4 times in just a few hours, which made me lose faith in altcoins and upcoming IEO projects. I will have to be careful and consider carefully if I want to participate

[Spider A4]

MATIC is real project but this sudden dropped is unexpected. Market condition is dosen't matter in the dumping. This is big manipulation something happened otherwise no reason to such falling down. Last 10 days price chart is horrible, very sad for which holders. I don't think here Binance directly involved.

[imutlinda]

I'm not a fan of Binance Initial Exchange offering (IEO) but this dumping happen to Matic is very hurt specially if you are holding matic well if you take a look the chart history of matic in the past you will noticed a good run for this altcoin, but always remember not all the time the altcoin will stay on the top.

well I'm also not a fan of the IEO binance.
and this dumping Matic really shocked me, suddenly in an instant it fell so badly it looked like deliberately manipulating (my guess). Or this possibility happened because the holders sold the whole Matic due for Christmas and new year.

My doubts about IEO like there is also a point, yes initially it might be profitable if you decide to sell the coins when at the highest price, your investment should have returned (ROI). a big market with a good reputation cannot guarantee that everything will be good. after this, IEO investors should start being careful again in the future.

Although Binance has informed Matic's status, they say that there is no manipulation here. But I couldn't believe that the price could collapse 4 times in just a few hours, which made me lose faith in altcoins and upcoming IEO projects. I will have to be careful and consider carefully if I want to participate

You can make this experience a lesson to be more careful because not all projects can provide benefits and there are projects that give losses to our funds like this project. you get a bad experience but because of this experience you can relearn so that in the future if you invest again you have to be more careful and careful because investments always discuss the funds spent

[FairUser]

Not only are Binance IEO projects being dumped, Okex, Huobi, Kucoin .. the projects which IEO in these exchanges are also dumped seriously. There are altcoins that have dropped 20 times since being listed at these exchanges, so this is the general situation of the entire market as the price of bitcoin is constantly adjusted. At this point, it's best to stay away from altcoins because the main trend is still dump

[lolgato1]

They raised hard cap and still they do not have enough? Sending a big part from team reserve doesn't look likw normal behavior, don't you think?

[imstillthebest]

Not only are Binance IEO projects being dumped, Okex, Huobi, Kucoin .. the projects which IEO in these exchanges are also dumped seriously. There are altcoins that have dropped 20 times since being listed at these exchanges, so this is the general situation of the entire market as the price of bitcoin is constantly adjusted. At this point, it's best to stay away from altcoins because the main trend is still dump

what about btc ? the trend of btc were also dumped but you werent saying that people should stay away from it  ? anyway  .

all ieo's down that means that the trend for ieo's were now over  .   i thought ieo's are different from ico's ?  but it looks like ico are still better because ico's trend last a little bit longer than ieo's   .  or idk maybe its this only caused by the dumped of the market and not the other way around  . hmmm lets hope so  .

[nicecrypto]

Some ieo tokens are already dumping way before btc ever thought of dropping in price, we all know ieo are no different from ico, imagine a project that has no product backing whatsoever is pumped to 70% of its original price, what else should be expected when everyone who participated in the ieo wants to take profit? Definitely it will dump.

[South Park]

There have been several issues with Matic and I don't think it would be wise to blame binance for it. Binance can't just always carry the tokens to a better price. When the project does some mistakes, it's bound to fall. Most of the IEOs in binance are still in positive ROI and matic is one of the exception.

your thoughts are absolutely right. Matic dump cannot blame binance. ieo in binance is always a big success and investors get high roi when tokens are released to the stock exchange. Matic dump is caused by developers who sell their rights as explained by our friends. let's think positive.

It's to be expected that some investors will blame binance for it because the major reason they invested into this coin is because it's kind of being endorsed by binance at the initial phase of IEO and now facing problem they are desperately seeking for the spacegoat though Binance can't be completely blamed for this problem. It's the developer's self initation that causes this problem.

Binance should not be blamed at all in the case an ieo fails, what they are doing is only offering a platform in which you can trade your coins safely from the very beginning, that is all, that should not be taken as an endorsement coming from binance, if that actually happened most likely binance will open itself to all kind of possible lawsuits and they are not going to want that for them, then this means that if you want to invest in a project then you need to consider its merits and not the place in which you can exchange it.

[alrose]

After what Binance has done for past 6 months, this will be no big deal for them!

But the important thing is that this manipulation is not recommended for a big exchange like this. A lot of people lost a lot of money because of matic growth and they lost everything after 1 hour. This may be due to CZ and his team manipulating it, because previously the data showed that there were a lot of people making Long orders and the Matic dump would bring a lot of profits to them. I think Binance is not really a good exchange anymore, they are in a position to make the speculators lose more money.

In this case, the market will soon be empty and everything will fall into one big hole.ICO - in fact, they're dead.IEO - speculators.Where can a simple ordinary investor go?

[devillnj2.1]

the dramatic falls of matic is really painful and it's very sad that it happened in one of the big names in term of crypto currency exchange, their reputation and credibility is at stake right now, if they will not take the right action about this, they will lose a lot of their investors and users.

[Balladtony77]

Coins from top exchange can drop in value as well if the market price keeps dwelling in a red market, no single coin value will be left untouched except stable coins