Indian crypto coin GARI cracks 80% as large investor dumps tokens
Premium- According to the company, a large investor sold $2 million worth of GARI, causing the crypto asset to crash
India’s first social crypto token, GARI, which is backed by Bollywood actor Salman Khan, slumped 80% on hacking rumors, which have since been refuted by the company.
According to the company, a large investor sold $2 million worth of GARI, causing the crypto asset to crash.
GARI token was launched in October last year with an aim to help Indian creators monetize their content over a short video application, Chingari.
Founded in November 2018 by Sumit Ghosh, Deepak Salvi, Aditya Kothari and Biswatma Nayak, Chingari lets users download and upload short videos and shop for merchandise within the app, among other things. GARI is earned by doing in-app activities, including creating, liking, and sharing videos.
GARI, which has been trading around the $0.80 level over the past seven days saw a fall to as low as $0.10 level on Monday night. The token was trading at $0.17, showing a fall of 77.4% at around 5.50 PM IST on Tuesday, as per CoinGecko, a digital currency price and data platform.
In the broader crypto market, bitcoin and Ethereum were trading 0.5-1% in the red.
In a statement issued on Twitter, Chingari Network clarified that “there has been NO hack identified on the tokens‘ side & so far this looks like a market event."
“We assure our community that ALL tokens are safe in the respective reserves. We are in constant touch with the exchanges & assessing the situation. We humbly request all the community members NOT to panic. We will keep everyone posted on further development," the statement added.
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Listing the reason behind the crash, Chingari Network said that as per the internal findings of the team, it was found out that someone placed $2 million worth order, which suddenly pushed the price to $0.14.
“The market makers didn’t provide enough liquidity to handle the price, and thus more accounts on KuCoin exchange got liquidated, taking the price to 3 cents," the platform said.
According to the network, this was a black swan event which has passed.
Recently, GARI Network had announced the launch of GARI Mining Program, which was aimed at viewers and creators engaging on the platform.
The crash in the token has come at a time when crypto market capitalization has slumped less than $1 trillion from over $3 trillion, while many exchanges such as Vauld, Celsius and CoinFLEX have halted withdrawals.
In the recent past, crypto token Terra Luna cracked 100%, wiping out $40 billion of investors’ wealth.
Meanwhile, as per reports, Indian crypto exchanges have suffered declines of up to 90% in the value of daily trading immediately after the 1% tax deductible at source became effective on July 1.