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.
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
— 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 month’s 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.
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 token’s next moves in the coming days.
