Enthusiasts of cryptocurrencies often observe with excitement when companies make investments in alternative coins. These investments are significant as they indicate progress and relevance in the crypto sphere. However, there is a flip side to this scenario, where altcoin projects may experience substantial declines. This is precisely what took place recently with the altcoin known as Mantle Network (MNT). Let's delve into the specifics.
Mantle Network’s Price Peaks and Then Dips
At the beginning of the day, there was a buzz in the crypto market regarding the remarkable performance of the altcoin Mantle (MNT), a Layer 2 (L2) Blockchain solution. It managed to climb to the 33rd spot among the top 100 cryptocurrencies within 24 hours. Achieving a new peak of $1.49, MNT saw a surge of 40%.
Information from Lookonchain, a platform that monitors the movements of large entities, revealed that the global crypto investment firm Dragonfly transferred 10.5 million MNT tokens, totaling $12.6 million, to the Bybit exchange.
Subsequently, when Upbit declared its intention to list MNT tokens, Dragonfly took another step by depositing 21 million MNT tokens, valued at $25.2 million, into Bybit. What followed after these transactions? Let's find out.
MNT Price Witnesses a 20% Decline
It appears that the purpose of these actions was to sell off the tokens. Dragonfly, the global crypto venture fund, sent the tokens to the exchange with the intention of selling them, leading to a rapid decline in price, as shown in the graph.
After Dragonfly’s sales, the cryptocurrency MNT experienced a 20% decrease, pushing the price below $1.2. This could potentially result in losses for individual investors.
Investors are advised to closely track such altcoin acquisitions and make informed decisions. Companies like Dragonfly tend to sell off altcoins promptly after their prices surge. Therefore, it is essential to stay updated on developments and assess price increases carefully to mitigate risks.
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