Binance Labs-Backed Project BinaryX (BNX) Faces Massive Sell-Off
BinaryX, a fantasy RPG project supported by Binance Labs, has been hit with a significant sell-off following a wave of token dumping.
Update as of the evening of December 5:
As of the evening of December 5, BinaryX has proposed two options to utilize 6.5 million BUSD to buy back BNX:
- Purchase BNX directly from the secondary market.
- Buy back all BNX unlocked after December 9.
BinaryX will re-launch BinaryX DAO to fairly decide the buyback plan with all.
— BinaryX (@binary_x) December 5, 2022
Revenue from heroes auction, 6.5M BUSD, will be spent on buyback.
1/: Buy back $BNX in 2nd market
or
2/: Buy back all $BNX unlocked after 9 Dec 2022
Please prepare ur ans & vote ur choice🔜
The BinaryX DAO community will vote on these proposals.
Original Post:
According to Lookonchain, around 11:30 PM UTC+7 on December 3, three wallet addresses withdrew from the BNX/BUSD pool on PancakeSwap and transferred a total of 15,832 BNX (approximately 1.9 million USD at the time) to Binance for sale.
Who dumped the price of $BNX?
At around 4:30 PM UTC, three addresses withdrew $BNX from the BNX-BUSD Staking Pool, removed BNX liquidity from #PancakeSwap, and transferred all $BNX to Binance and #PancakeSwap for sale. They dumped a total of 15,832 $BNX ($1.9M at that time). pic.twitter.com/SDe0xJO5nl — Lookonchain (@lookonchain) December 4, 2022
The timing and actions of these three addresses suggest they are likely operated by the same entity. The massive token dump caused BNX to plummet from 125 USD to 93 USD, sparking panic among retail investors.
Subsequently, another transaction withdrew 14,526 BNX worth 1.2 million USD from the pool and transferred it to Binance, causing BNX to drop further to 57.1 USD.
And, a whale withdrew 61.6 $BNX from the BNX-BUSD Staking Pool and removed 14,464.6 $BNX liquidity from #PancakeSwap.
Then he transferred all 14,526 $BNX ($1.2M) to #Binance 8 hours ago. This dropped the price of $BNX from $84.1 to $57.1, a drop of about 32%. pic.twitter.com/xJgNoN1XDJ — Lookonchain (@lookonchain) December 4, 2022
Rumors began circulating that the project itself was behind the BNX dump. The community expressed dissatisfaction and demanded BinaryX address the issue and publicly verify the wallet addresses involved. The project team responded by reassuring users that no team members were involved in selling BNX and that the system was operating normally.
There’re rumours going around about our projects hence we are here to clarify:
— BinaryX (@binary_x) December 3, 2022
NOT A SINGLE $BNX is sold from our team and all our projects are running smoothly.
Command your heroes to fight for your honour and dispel rumours. #CyberChess #CyberLand #CyberDragon
However, this response seemed to have the opposite effect, causing BNX's price to drop even further. By the afternoon of December 4, BinaryX announced it would buy back BNX to stabilize the situation.
Our team will buy back $BNX soon and are currently working on the detailed plan.
— BinaryX (@binary_x) December 4, 2022
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! 💪
BNX has fallen sharply from its peak of 175 USD in the past 10 days, losing over 50% within a 24-hour period. A large number of users have exited the BNX liquidity pool on PancakeSwap, according to Nansen. As of the latest update, BNX is trading around 71.5 USD.
1H Chart of BNX/USDT on Binance as of 10:40 AM December 5, 2022
BinaryX is a GameFi and IGO launchpad project backed by Binance Labs. The BNX token is integral to the game's activities and had surged tenfold amid market difficulties. BNX holders can participate in community governance and vote on key decisions. As of November 2021, BNX had a total supply of 21 million tokens, with approximately 2 million BNX in circulation.
