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.
Our team will buy back $BNX soon and are currently working on the detailed plan.
— BinaryX (@binary_x) December 4, 2022
We have NEVER SOLD any $BNX. Because just like Cyber Heroes, we know that as long as we are alive, storms are inevitable and Cyber Heroes will be our invincible weapon to the next victory! 💪
There’re rumours going around about our projects hence we are here to clarify:
— BinaryX (@binary_x) December 3, 2022
NOT A SINGLE $BNX is sold from our team and all our projects are running smoothly.
Command your heroes to fight for your honour and dispel rumours. #CyberChess #CyberLand #CyberDragon
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.’
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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.
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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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