MATIC Plunges After SEC Labels it a Security: Whale Selling Causes Worry

• The SEC labeled Polygon’s native token MATIC a security and it failed to recover following the initial dump.
• A whale might be responsible for the failed recovery after transferring 115.3 million MATIC, worth around $95 million at the time of transfer, from a cold wallet to Binance.
• Despite the setback, MATIC has remained one of the best-performing digital assets in the last year or so, up by around 31%.

SEC Labels Polygon (MATIC) Security

The U.S. Securities and Exchange Commission (SEC) named many crypto coins securities in its lawsuits against Binance and Coinbase. One of them is Polygon’s native token MATIC.

MATIC Fails to Rebound After Being Labeled Security

Polygon (MATIC) has yet to recover from the initial dump after the SEC labeled it a security. MATIC fell to levels not seen since January 2023. A whale might be responsible for the failed recovery after transferring 115.3 million MATIC, worth around $95 million at the time of transfer, from a cold wallet to Binance. This potentially increased selling pressure, preventing MATIC from rebounding like other tokens did.

Failed Recovery Causes MATIC To Fall Out Of Top 10 Cryptocurrency List

Polygon’s native token MATIC has again fallen out of the top 10 cryptocurrency list due to its failed recovery after being labeled as a security by SEC lawsuit against Binance and Coinbase. Solana (SOL), which is now above it on this list, has over $600 million more in market capitalization than MATIC currently does trading at $0.78 per coin according to CoinGecko data .

Despite Setback, One Year Performance Of MATC Remains Positive

Despite this recent setback, Polygon’s native token MATC remains one of best-performing digital asset in last year or so with an increase of 31% in past year according to CoinGecko data .

Why This Matters?

Polygon’s native token MACT is very sought-after token in crypto market due developing multiple Ethereum scaling solutions like Polygon zkEVM which makes this situation more important as whales are still selling millions worth tokens when such projects are becoming popular day by day .