- BNX token fell more than 50 percent over the past few days.
- BinaryX announces a plan to buy back the tokens.
- Short sellers have been profiting from the drop in prices.
Crypto gaming platform BinaryX has announced an upcoming recovery plan, stating that it would buy back BNX tokens. The announcement comes after rumors surfaced that the project’s core team was dumping 4 million BNX per hour on Binance.
After the price of BNX plummeted more than 50%, the project team was swift to address the matter, arguing that these rumors weren’t true. In a tweet on December 3, the project clarified that “NOT A SINGLE $BNX” was sold by the project’s team, also adding that all of the project’s operations were “running smoothly.”
The project has yet to reveal the pricing at which the tokens would be repurchased.
Despite the clarification, the project’s native token, BNX, fell more than 50% in the 24 hours after the rumors surfaced. According to data from Coingecko, the BNX token’s price dropped as low as $17.17 on January 25 and rose as high as $171.34 in November, when the general market and other digital assets grappled with concerns about a possible FTX’s contagion. However, as a result of the recent rumors, the token’s price has dropped from $126 to $58.25.
In the meantime, short sellers have been cashing in on the recent uptick in volatility. Many traders, including 0xRajee and the verified analyst Elle on Tradingview, made significant profits by shorting the cryptocurrency.
Further, Pancakeswap liquidity providers have pulled out from the BNX token market due to the widespread fear, uncertainty, and doubt surrounding the token. Cryptocurrency analyst King Crypto has warned that BNX tokens’ price could drop lower as two pancakeswap whales have reportedly withdrawn more than 20,000 BNX tokens.