Chicago-based crypto trading firm, Cumberland, is moving millions worth of Polygon’s native cryptocurrency, MATIC, to Binance and Coinbase. As of June 10, the trading firm had moved $9.8 million MATIC to the two leading cryptocurrency exchanges.
Cumberland moving millions worth of polygon tokens
According to the web3 data analysis platform, Lookonchain, Cumberland shifted 9 million MATIC tokens valued at $6.3 million into Binance and another 5 million worth an estimated $3.5 million into Coinbase over 7 hours.
Cumberland transferred the funds in six small transactions ranging between 1.5 million and 2 million MATIC.
The crypto trading company’s move comes amid significant transfers of MATIC tokens, pointing to a potential dumping trend by whales and institutions.
When Cumberland moved its MATIC holdings into Coinbase and Binance, another whale reportedly deposited 9.4 million MATIC into the two exchanges.
Further exacerbating the already concerning situation, Whale Alert, a popular crypto transaction tracking service, has reported a substantial transfer of 46,908,173 MATIC tokens, equivalent to approximately $32,595,499, from Binance US to an unknown wallet.
It further adds to the uncertainty surrounding MATIC’s market dynamics and the actions of influential holders.
The influx of MATIC tokens onto exchanges by these entities has coincided with a significant decline in the token’s price.
Within the period, the value of MATIC plummeted by approximately 29%, primarily due to the considerable selling pressure generated by these deposited tokens.
The coin initially traded at $0.7882 but ended the period exchanging hands for $0.5583, per data from CoinGecko.
Many observers have blamed the ongoing upheavals in the crypto sector on the U.S. Securities and Exchange Commission’s (SEC) recent crackdown on Binance and Coinbase.
The regulator launched lawsuits against the two exchanges, in which it accused Binance and its founder Changpeng Zhao (CZ), of breaking securities rules and misleading investors. The SEC claims Coinbase is an illegal exchange.
The SEC also flagged several cryptocurrencies, including MATIC, Solana (SOL), and Cardano (ADA), as unregistered securities.