Kyber Network’s KNC tokens dump more than 30% in minutes

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2022-09-21 14:28:09

After continuously maintaining a stable price for more than 1 month, despite the market turmoil, the KNC token price of the DeFi Vietnam Kyber Network (KNC) project suddenly dropped, raising concerns among the community. .

On the morning of September 19, Bitcoin once again dropped from the $20,000 mark, at times falling below the $19,000 threshold. Currently BTC is hovering around $18,700. Kyber Network’s KNC also had an unexpected price reaction when it suddenly dropped more than 30% in value in just a few minutes, from $1.9 to $1.25.

Although there are signs of a slight price recovery, KNC is still trading as low as $1,346.

KNC/USDT price chart at 10:15 am 19/09/2022

Looking for the cause of the problem, most of the community speculated that Kyber Network was attacked as similar cases are often seen in the market. However, the project’s co-founder and CEO, Mr. Victor Tran, corrected soon after, that KNC’s plunge was simply an act of “discharge” from a whale.

On-chain data indicates this whale wallet has moved 5.5 million KNC . tokens on the FTX exchange to take profits. Because the selling pressure was too great for the traders holding KNC tokens, it led to the triggering of a panic sell, and the KNC price was pushed lower.

Two weeks earlier, KyberSwap – a platform built on Kyber Netwok was hacked. The damage was only estimated not to be too large, only about $ 265,000 and the foundation team quickly settled it.

Another detail that explains the sudden sell-off of whales is attributed to the fact that KyberSwap is a rare DEX that supports users to access and swap ETHW-related assets – the split-chain version of Ethereum. Proof-of-Work after The Merge for 30 days. Meanwhile, other popular DEXs on Ether such as Uniswap, Sushi or Curve Finance do not support ETHW.

In fact, EthereumPoW (ETHW) and a series of recently launched ETH forks did not attract a “certain capital” in the community, ETHW crashed consecutively after only one day of launch. If Ethereum is recording a decrease of nearly 15% from the time of The Merge, ETHW is dumped more than 70% from the original level. Is it possible that because of “disliking” Kyber Network’s enthusiastic support of ETHW that the other whale did?

Commenting on the price situation, the CEO of Kyber acknowledged the serious nature of the token’s loss of value by nearly 30% within an hour and should not be repeated in the future. The CEO also affirmed that although KNC has been allocated for a long time, the project team still has a way to control the token supply. However, Victor Tran denied knowing the identity of the “whale” of the unloading.

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