Ethereum (ETH) based cryptocurrency payment network Matic has described equally "baseless" claims it manipulated the price of its token after it crashed sixty% in minutes.

In a web log post on Dec. ten, executives addressed community participants who saw the value of the project'south in-house MATIC token lose almost of its value hours before.

Matic denies manipulation after crash

According to data from Coinmarketcap, MATIC/BTC reached a loftier of 562 satoshis on Monday, before diving to lows of just 195 satoshis.

Despite a subsequent correction above the 200 satoshi marking, the pair was still trading down 50% at press time on Tuesday.

MATIC/BTC 1-month chart

MATIC/BTC one-month nautical chart. Source: Coinmarketcap

"Nosotros want to strongly state that the allegations of token movement from our Foundation account, made by a FUD account against Matic squad are completely baseless," the blog post read.

Matic was one of the first and so-called initial exchange offerings (IEOs) to heighten funds on Binance Launchpad, the dedicated incubator from cryptocurrency substitution Binance.

As Cointelegraph reported, after losing value post-obit the IEO in April this year, a sudden spurt of bullish action saw MATIC/BTC gain considerably during the terminal week of November.

All the same, in a warning to potential investors, regular Cointelegraph contributor Michaël van de Poppe urged caution almost joining in.

"Rule number 1 in trading: never purchase an explosive greenish candle and never FOMO (fear of missing out) after the fact. In that location'south e'er a retrace," he wrote in assay on Nov. 26.

That retrace saw MATIC opposite the entirety of its gains prior to the pocket-size rebound.

CZ: "clear" Matic squad not involved

In the face up of criticism, however, Binance CEO Changpeng Zhao (known as "CZ") was keen to defend a home-ground project from potentially unfounded criticism.

"Our team is all the same investigating the data, only it's already clear that the MATIC team has nix to practise with it," he wrote on Twitter.

CZ added that major bagholders were to arraign for the volatility:

"A number of big traders panicked, causing a wheel. Going to exist a tough call on how much an commutation should interfere with people's trading."

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