Experts named the reasons for the collapse of the REEF rate by 58% per day
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Johny Smith
2024/10/22
3 mins read
The Reef Finance (REEF) cryptocurrency experienced a significant drop in value: its price dropped by 58% in just 1 day. This is due to the sharp selling of a large holder who apparently sold 866 million REEF tokens on three popular cryptocurrency exchanges – HTX, KuCoin and Gate.io. The seller lost about 55% of the original value of the assets, equivalent to $2.53 million. As a result, this holder was left with only 89.45 million REEF valued at $204 thousand, with an unrealized loss of another $270 thousand.
Such a significant price reduction, combined with sharp sales, indicates possible “panic” behavior in the market. Sales of 866 million tokens could have been triggered by changes in sentiment regarding the project or general instability in the cryptocurrency segment. In this case, the massive liquidation of assets led to increased volatility and provoked additional pressure on the price, which exacerbated the decline in REEF quotes.
Reef Finance is a decentralized finance (DeFi)-focused blockchain platform built on top of Polkadot. The project offers an ecosystem for simplified access to DeFi applications, as well as cryptocurrency trading and investment.
The main goal is to provide users with a platform that brings together various DeFi applications and projects in one place, making them accessible without the need to navigate between multiple platforms. This includes integration of various blockchains and support for various cryptocurrency assets, making it easier for users to interact with the markets.
However, sudden changes in token value, such as the recent drop in $REEF, can threaten investor confidence in the platform. The participation of one large holder who makes a massive sale of assets negatively affects the liquidity and stability of the token price, which may create the impression of insufficient stability of the product. Investors in such situations tend to be cautious, especially if such events are repeated subsequently.
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