A massive amount of MATIC tokens, worth millions of dollars, were sent to crypto exchanges by key market makers Jump Trading and Cumberland on Friday night, just before a nearly 30% drop in the token’s price, according to blockchain data. Analytics firm Lookonchain tweeted that Cumberland had deposited 9 million MATIC, worth over $6.3 million, to Binance and 5 million MATIC, worth $3.5 million, to Coinbase. Additionally, another crypto wallet related to Cumberland, Jump Trading, and Robinhood sent a cumulative 9.4 million to crypto exchanges. These tokens were likely sold on crypto exchanges, leading to a sudden decrease in MATIC’s price. Similar drops were seen in Cardano (ADA) and Solana (SOL) tokens, which fell as much as 25% in the past 24 hours.
The tokens were likely impacted after being alleged as securities in multiple U.S. Securities and Exchange Commission (SEC) filings against crypto exchanges Binance and Coinbase earlier this week. Matrixport, a crypto services firm, noted in a statement to journalists that further selling of major tokens can be expected over the weekend. “Altcoins can crash this weekend even more as trading volumes are thin and market makers such as Binance have become less active,” the firm said.