Dec 5, 2022 at 05:52While the crypto market is watching the sudden stunning rise of Axie Infinity with its mouth open, meanwhile, the BinaryX token (BNX) is falling into the abyss. BinaryX, whose investors include Binance, succumbed to the bear market, although it was not affected by the collapse of Terra (LUNA) or FTX.
If last week the price loss was 20% (about which, by the way, we wrote in our newsletter; you can subscribe here), then as of December 5 the value of the native blockchain-based game token collapsed by 55%. Thus, in just 10 days, BNB dropped from $129 to $64.
What is BinaryX (BNX)?
BNX is the cryptocurrency of the GameFi platform and metaverse game BinaryX. The price fell despite announcing two new games: open-world MMO CyberLand and MMO World Building. Both run on BNB Chain. BinaryX began as a decentralized derivative trading system.
BNX is the platform’s main token and is used as native in-game currency.
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The maximum supply is 21,000,000 tokens, with a total supply of 5,994,586 BNX and 2,637,764 BNX in circulation.
The top 30 BNX holders own a total of 6.06M BNX (worth about $418M), which is 98% of the total supply.
Binance holds about $2.3M BNX ($157 million), which is 37% of the total supply and 86% of the circulating supply.
Why BNX price crash?
According to the on-chain analysis platform Lookchain, three different addresses withdrew 15,832 BNX-BUSD staking pool, removed BNX liquidity from PancakeSwap, and moved all BNX to Binance and PancakeSwap for sale. In total, they dumped 15,832 BNX (about $1.9 million).
As a result of the sale of these three addresses, the price fell from $125 to $93 in a short period of time, that is, by about 26%. This caused panic in the market, and many retail investors rushed to get rid of BNX.
The whale then withdrew 61.6 BNX from the BNX-BUSD staking pool and removed 14,464.6 BNX liquidity from PancakeSwap. He then moved all 14,526 BNX (worth about $1.2 million) to Binance. After that, the price of BNX fell even more dramatically: from $84.1 to $57.1, which is about 32%.
How can I make money on this?
Apparently, it is better not to mess with BNX at all for the time being. Lookchain believes that buying/shorting/longing BNX is highly risky.
The price of BNX at any moment can either be raised by market makers/project teams or fall sharply due to selling by the whales.
The BinaryX team announced via Twitter that it would buy out BNX. But it remains to be seen whether the project will be able to restore its reputation and return to its previous price.
Our team will buy back $BNX soon and are currently working on the detailed plan.
We have NEVER SOLD any $BNX. Because just like Cyber Heroes, we know that as long as we are alive, storms are inevitable and Cyber Heroes will be our invincible weapon to the next victory! 💪
— BinaryX (@binary_x) December 4, 2022
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