BNX Price Tanks 80% on Rumors of BinaryX Team Selling Treasury Tokens

4 December 2022, 13:29 GMT+0000
Updated by Paolo Besabella
4 December 2022, 13:29 GMT+0000
In Brief
  • The BinaryX BNX token fell by over 50% over the last 24 hours.
  • BNX had risen by over ten times during the thick of the current bear market.
  • The project developers said they would repurchase the tokens soon.
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The BinaryX BNX token has fallen by over 50% in the last 24 hours following rumors of its developers selling treasury tokens.

Rumors surfaced earlier today that 4 million BNX was being dumped per hour on Binance alone. A crypto trader also asked the BinaryX team to answer questions concerning certain transactions.

All this generated panic within the BinaryX community as many speculated that the sellers were the token developers.

Short Sellers Profit

Several crypto short sellers have profited from the situation, with many averaging returns of over 300%.

Elle, a verified analyst on Tradingview, made over 900% profit, while other traders like 0xRajee also made substantial profits from shorting the token.

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Meanwhile, due to the level of FUD surrounding the BNX token, liquidity providers on Pancakeswap have exited their positions. King Crypto predicted that holders of the metaverse-related token might face more pain as two whales have withdrawn over 20,000 BNX (over $2 million) tokens to sell.

BNX Price Rose 10X in Bear Market

Despite the bear market conditions, the BNX token has been one of the best-performing digital assets in the current year. Wu Blockchain reported that BNX rose more than ten times in this year’s bear market. For context, Bitcoin and Ethereum fell by over 50% over the same time frame.

According to CoinMarketCap data, the BNX token traded for as low as $17.17 on January 25 but spiked to a high of $171.34 in November -when the broader market and other digital assets dealt with the fears of a possible FTX’s contagion.

BinaryX BNX price performance
BNX-YTD Price Performance (Source: CoinMarketCap)

In the last 24 hours, BNX dropped by over 50%. The token fell to $58.25 from $126.

BinaryX Team Will Buy Back Token, Refutes Selling Rumor

According to the BinaryX team, rumors that it was selling the BNX token were untrue and that all of its projects were running smoothly.

The developers tweeted that they would buy back the token soon and are working on a detailed plan. The developers did not reveal the rate at which the tokens would be repurchased -the team told BeinCrypto to wait for the update.

Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.