BinaryX (BNX) Falls Over 50% in One Day Amid Rumors of Team Selling Treasury Tokens

Popular play-to-earn (P2E) game developer BinaryX’s native token, BNX, has fallen by over 50% in one day. The Binance Labs investee’s token plummeted from its peak of $175 to $63 in the last ten days following rumors of its developer team selling treasury tokens. 

According to the rumors, over four million BNX tokens were allegedly being dumped per hour on Binance by BinaryX’s team. However, the developer team later addressed the rumors in a blog post, refuting allegations and asserting the team hadn’t sold any tokens. 

The team then announced they were launching a buy-back plan to stabilize the token price. Surprisingly, BinaryX was one of the top-performing tokens this year, gaining over 1,000% amid the chaos of the bear market.

Damage Control

BinaryX, in its blog post, claimed it had never taken any liquidity from the liquidity pools, and the liquidity it added a year ago is untouched in the pool. The game developer refuted rumors, calling them ‘entirely unfounded and false.’

The Binance Labs investee shared its wallet address to back up its statement and promote full transparency amid the fear and uncertainty. They encouraged readers and their community to assess the movements of their liquidity wallet

BinaryX claims the current token price fluctuation is caused by market panic and speculations following the team’s plan to unlock tokens. They reportedly communicated to the community regarding the token unlocking on their social media channels days before the event. BinaryX alleged this was normal investor behavior at play. 

The developer team announced it is launching two rounds of DAO voting to decide on its buy-back solution to control the damage inflicted. BinaryX aims to use the 6.5 million BUSD revenue generated from its heroes auctions to buy back BNX tokens and stabilize the price. 

DAO Voters can choose two options on how the developer team can buy back tokens using the heroes auctions revenue. 

The first option suggests the team gradually buy back BNX tokens on the secondary market and burn all purchased tokens. 

The second option proposes using the 6.5 million BUSD tokens to buy back all the BNX from the upcoming unlocking event on 9th December in advance. BinaryX will then burn all purchased tokens, returning BUSD to users. 

The CyberDragon developer is confident it will extract itself from the situation, claiming it is not its first rodeo. 

On the Flipside

  • BinaryX has launched its IGO landing page. The game developer aims to support upcoming games and projects with its IGO.
  • BinaryX has also kickstarted its Cyber Incubation Fund to incubate new blockchain games following its IGO platform launch. 
  • BNX tanked to a low of $15.80 earlier this year and successfully rose to a $175 valuation afterward. The developer previously involved its community in making decisions that would be pivotal in reviving the token.

Why You Should Care

BinaryX’s token, BNX, was one of the best-performing assets this year. In contrast to Ethereum and Bitcoin, which have fallen over 50% this year, BNX has risen by 10x. It’s rare to see a project care about its community in the crypto space, trying to clear panic and encouraging developments and transparency. 

 

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Author
Insha Zia

Insha is a crypto-journalist from Pakistan specializing in Web3 gaming and the metaverse. At DailyCoin, he hunts for breakthroughs, interesting stories, and upcoming developments in the metaverse and Web3 gaming space. Since 2019, Insha has authored and ghost-written hundreds of articles for some of the world’s top tech publications covering various topics ranging from crypto how-tos to opinion pieces. Insha has a background in Computer Engineering, graduating from UET, Peshawar. He has ample experience working as a developer and a data scientist. He is also an avid gamer and has been a vocal member of various gaming communities. Insha's favorite genres are MMORPG and FPS. His interest in Web3 gaming grew during the DeFi boom in 2021 when he tried and reviewed Web3 games as a hobby. Today, he is an active member of numerous web3 gaming communities, contributes to the growth of the space, and constantly reports on events. As a seasoned gamer, Insha also provides insight on several upcoming Web3 projects from a gamer’s point of view. Moreover, during his time in the Web3 gaming and metaverse space, Insha has built valuable relationships with CEOs and Presidents of upcoming projects. Insha plans on leveraging his connections to provide accurate reports and news to DailyCoin readers.