cryptonews.com
Ronin, the gaming blockchain developed by Sky Mavis, the creator of Axie Infinity, has demonstrated resilience in its token (RON) performance despite facing initial turbulence while listing on the crypto exchange Binance.
On February 5, Ronin token prices experienced significant volatility, plummeting over 40% to $2.52 after a notable 28% increase the previous week. At the time of reporting, RON is trading at $2.63, showcasing a steady recovery.
Ronin Faces Market Challenges Amidst Price Volatility and Declining Market Cap
Since October 2023, there has been a steep rise in RON prices, leading to a high of $3.34 on February 4, 2024, just below its all-time high of $3.61. However, there has been a recent decline, confirming the $3.50 mark as a resistance level.
Despite leveraging the $2.5 price support to mitigate substantial declines, Ronin’s market capitalization has dipped below the $1 billion mark, currently at $746.26 million. This drop in market cap accompanies increased social activity around the asset, with social volume surging by 254% in the past 24 hours.
Despite a recovery in token price from its low in October 2023, Ronin’s total value locked (TVL) has shown sluggish growth. Larsen attributed this to the aftermath of the 2022 heist, where North Korean hackers exploited the Ronin Bridge in a $600 million attack. Combined with a general decline in cryptocurrency prices, this led to a substantial decrease in Ronin’s TVL from nearly $1.5 billion to under $50 million by the end of 2022.
Although the TVL currently stands at $156 million, with the Katana decentralized exchange contributing over 99% of the locked funds, Larsen stated that competing for TVL with DeFi chains is not a priority for Ronin.
Binance Tightens Listing Plans and Offers Bounty
Following the listing of Ronin (RON) on Binance, the token plummeted by 40%, triggering insider trading concerns within the crypto community.
Before the official announcement by Binance, users had speculated about the listing after observing token aggregation data on public blockchains. However, the announcement led to a massive sell-off as insider accumulation of RON tokens and subsequent swift sell-offs drove prices down.
感谢今天所有关心币安，热爱币安，支持币安的朋友们，也收到了很多建议，我都有认真一条条看。过去偶尔有关于币安上币信息泄漏的激烈讨论，通常是一些尚未发布代币的项目，社区为了保持热度过度宣传并不鲜见；但今天RONIN上币公告发布后RONIN价格下跌引发了社区激烈讨论，经过内部调查发现是之前集成公…
— Yi He (@heyibinance) February 5, 2024
An investigation revealed a concerning combination of token accumulation on blockchain scanners and leaked communications from within Binance, leading to insider accumulation of RON tokens. This insider trading activity resulted in swift sell-offs post-listing, causing a sharp price decline.
Yi He, co-founder and spouse of former CEO Changpeng Zhao, addressed the situation by announcing stricter internal controls to prevent information leaks and ensure fairness in the listing process. She emphasized that leaks would result in listing cancellations or delays and vowed to tighten the management of new token listings to ensure fairness and integrity in the listing process.
She announced that only necessary employees would have access to listing details and emphasized that any leaks would result in severe consequences, including warnings and termination of employment against anyone found responsible for leaks.
Yi He promised to strengthen the monitoring of scripts and welcomed information on crypto security vulnerabilities and staff leaks. People who provide successful tip-offs will receive a bounty of between $10,000 and $5 million.
“If you verify that Binance team members are corrupt, we will keep your identity confidential and provide you with a security vulnerability bonus of US$10,000 to US$5 million.”
The US Commodity and Futures Trading Commission (CFTC) investigated Binance for insider trading in September 2021. The CFTC said Binance and its staff had exploited customers illegally, using insider information to earn profits. Binance denied the allegations.
The US Securities and Exchange Commission (SEC) has also alleged that the crypto exchange listed unregistered securities. The first hearing for the trial occurred in January.
Yi He co-founded Binance with former CEO Changpeng Zhao in 2017. Last year, Zhao pleaded guilty to money-laundering charges. The former CEO was denied passage from the US to Dubai despite pledging his $4.5 billion stake in Binance.US.