The cryptocurrency market saw the REEF tokens drop significantly, and the price fell by 58% in a matter of hours on October 16, 2024. This sharp decline spurred even more panic in the market, causing one entity to dump 866M $REEF tokens after the crash, deepening the market instability.Â
The $REEF price further plunged by 58% today, wiping out a month's worth of gains in just over a day!Three wallets (one entity) appear to have panic-sold 866M $REEF ($2.07M) to #HTX, #KuCoin, and #Gateio in the past 2 hours, allegedly losing $2.53M (-55%).Currently, they hold⊠pic.twitter.com/KWtgfgiwtu
â Spot On Chain (@spotonchain) October 16, 2024
Price Plummets Before Major Sell-Off
The REEF price started its free fall earlier in the day, and by the evening, it had plunged by 58%. This sudden reversal took place in just one day, effectively wiping out approximately a monthâs worth of gains and stunning many traders. As a result of this fast deterioration, one of the entities, which had built up a large $REEF position, had to sell off a big part of its position and applied further downward pressure on the token.
Spot On Chain data highlighted that the entity made 866M $REEF token sales, equivalent to $2.07M through exchanges like HTX, KuCoin, and Gate.io, which produced a realized loss of over $ 2.53M
Post-Drop Sell-Off Highlights Panic Response
This scenario is made interesting by the timing of the sell-off; the entity operated a massive sell-off after the price crash due to panic or for fear of more losses. Selling after the price had tumbled by 58%, the entity booked significant losses that became evident due to selling at an average of $0.002 per token instead of purchasing at $0.005.
The analysis of the Spot On Chain disclosed that the specified entity had bought 955.549M $REEF tokens for $5.064M at first. But because they sold them out at cheaper prices, they could only recover $2.06M.Â
Unrealized losses and Potential future market effect
The entity now only holds 89.45M $REEF tokens worth $204K, with an unrealized loss of $269.074K. Concerns have been raised over the stability of the $REEF in the market as the token has a low trading volume that makes it vulnerable to large price fluctuations during such events.
Final Word
The recent collapse of the $REEF token by 58% and an action by a major entity to sell the token highlights the risks associated with the crypto market, especially in tokens with low liquidity. Whether it will embark on a path of recovery is still unknown, and market observers will be waiting for the tokenâs next moves in the coming days.
Note that, this is my opinion not advice. Please do your research before starting trading. FolLoW Me, Add your comment, Discussions is a healthy environmentđ
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