Polygon (MATIC) Fails to Rebound After SEC Security Label
• The U.S. Securities and Exchange Commission (SEC) named Polygon’s native token MATIC a security leading to a dip in its value.
• Despite other crypto tokens rebounding, MATIC failed to recover, possibly due to a whale selling millions of dollars worth of MATIC.
• Despite the recent setback, Polygon’s MATIC has remained one of the best-performing digital assets in the past year with an increase of around 31%.
SEC Labels Polygon (MATIC) Security
The U.S. Securities and Exchange Commission (SEC) recently labeled Polygon’s native token MATIC as a security in its lawsuits against Binance and Coinbase, causing a significant dip in its value.
MATIC Fails to Rebound After SEC Label
Despite other crypto tokens rebounding after the SEC announcement, MATIC has yet to recover from the initial dump it experienced after being labeled as a security. It is currently trading at levels not seen since January 2023 and some speculate that this could be due to a whale selling millions of dollars worth of MATIC on Binance.
Why This Matters
Polygon’s MATIC is one of the most sought-after tokens in the crypto market, making it surprising that whales would sell millions of tokens despite Polygon developing multiple Ethereum scaling solutions like Polygon zkEVM.
MATIC Performance Over Last Year
Despite this recent setback, POLYGON’s native token has remained one of the best-performing digital assets over the last year or so with an increase of around 31%.
The US SEC labeling Poloygons’s native token as security led to an immediate dip in its value which it yet failed to rebound from despite other cryptocurrencies rallying afterwards potentially due to whales selling off their holdings on Binance. Nevertheless, over the past year or so Matics performance has been impressive increasing by 31%.