The Indian social media platform called Chingari has its own altcoin the one which… Gari Network (GARI) It had lost more than 80% of its value, falling suddenly to $0.10 from the $0.75 level it had been watching a short time ago.
Altcoin’s Developers Say Price Drop Caused An Investor Wanting To Sell $2M In Coins
The realization of such a high depreciation led to rumors that the platform was attacked by a hacker. However, according to Gari Network’s official Twitter statements, there were no hacks or leaks in the altcoin.
Developers, GARI in cryptocurrency reported that the price drop was purely a market event:
“First of all thank you for all your love and support, we really appreciate it. Now, we would like to clarify a few points regarding the latest developments of the previous day.
As a result of our evaluation, we concluded that there was no hack or abuse in the $GARI token contract. The price action was purely a market event.”
In addition, the developers said that the drop in the token was due to a whale investor wanting to sell $2 million worth of GARI tokens on the KuCoin exchange, and there was not enough liquidity on the exchange, and in this case, the coin fell:
“As far as we know, the $GARI token has been heavily impacted on Kucoin. The reason identified for the drop was a $2 million market sell order on July 4, 2022, and the token price was suddenly pushed to $0.14 as the market maker did not provide enough liquidity to execute it.
This sudden drop caused gradual liquidations in Kucoin and they started dumping in the open market, bringing the price down to $0.03, causing the black swan event. Then we recovered and stabilized.”
*Not investment advice.