The price of Solana blockchain-based Chingari (GARI) crashed this week, dropping around 87% on Monday. At the time of writing (1.13 pm, India time) today, GARI was trading at $0.1326, down 19.37% since yesterday, according to data on CoinMarketCap.
GARI was trading at $0.75 at around 11 am on Monday. By 11.25 pm, the token’s price plunged to $0.1069, fueling rumours of wrongdoings within the community.
However, GARI developers issued a detailed statement claiming the price fall was likely triggered by a single sell order of over $2 million by a large token holder. The statement denied reports of exploits or hacks.
The statement claimed that the GARI token price was majorly affected by the KuCoin crypto exchange. It said that the $2 million sell order at around 16:10 UTC on Monday pushed the price of the token to $0.14 as the market maker didn’t provide enough liquidity to handle it.
“After an evaluation, we conclude that there has been NO hack or exploit to $GARI token contract. The price action is purely a market event…From what we know, the $GARI token was affected majorly on Kucoin. The reason identified is the $2 million market sell order at 16:10 UTC on 4th July 2022, pushed the token price to $0.14 suddenly as the market maker didn’t provide enough liquidity to handle it,” the developers said in a series of tweets.
“This sudden drop caused cascading liquidations on Kucoin which they started dumping in the open market and drove the price down to $0.03 causing a black swan event. From there we have bounced back and stabilized,” they added.
The developers further said that the sudden drop in $GARI token price “resulted in a domino effect triggering other investors or speculators to follow the suit… We confirm that there was no insider trading.”
Chingari’s GARI token is one of the largest crypto social utility tokens. The active wallet users of GARI have grown to over 730,000 in five months since its launch.
(Cryptos and other virtual digital assets are unregulated in India. They are considered extremely risky for investment. Please consult your financial advisor before making any investment decision)