Billionaire Investor Mark Cuban Sparks Polygon Selloff Scare

Billionaire investor Mark Cuban has deposited millions of Polygon (MATIC) to Coinbase in what appears to be a liquidation move.

According to data from Spot On Chain, a wallet labeled as Mark Cuban 3 unstaked and deposited a total of 2.826 million MATIC on Coinbase at an average price of $0.91 per token. 

This transaction, valued at $2.56 million, took place on December 25, marking the most emphatic move of the tokens received from the Polygon Ecosystem Growth on May 24, 2021. Current permutations suggest a potential selloff is incoming.

Right Play by Mark Cuban?

As of May 24, 2021, the Polygon Ecosystem Growth transferred a total of 2.5 million MATIC to Mark Cuban, and Spot on Chain confirmed the billionaire staked the tokens to earn more. The staking yielded profit, considering the withdrawn 2.826 million MATIC.

🚨 American billionaire Mark Cuban (@mcuban) unstaked and deposited 2.82M $MATIC ($2.56M, price: $0.91) to #Coinbase ~6hrs ago.

Notably, he received 2.5M $MATIC (then $4.25M) from the #Polygon Ecosystem Growth on May 24, 2021, and then staked them to earn more $MATIC.

👉 More… pic.twitter.com/vwQiJZkN3O

— Spot On Chain (@spotonchain) December 26, 2023

When Mark Cuban received the Polygon tokens, the average price was around $1.7 bringing the value of the received MATIC to $4.25 million at the time.

If Mark Cuban eventually decides to sell his stash as projected, at the current price, the investment would be worth only $2,460,598.2. At this valuation, Mark Cuban’s liquidation may come at a loss despite the growth of the tokens.

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Whether the move is the right play or not, the potential Polygon liquidation is coming at a time when Mark Cuban is generally offloading his stake in some of his ventures.

According to media reports, in late November, Cuban reached an agreement to sell his majority stake at NBA side Dallas Mavericks in an epic $3.5 billion deal.

Dallas Mavericks, under Mark Cuban, embraced Dogecoin (DOGE), forming a pivotal crypto-centric business.

Impact on Polygon (MATIC)

Polygon (MATIC) is surprisingly not buckling despite the likely selloff move. This is perhaps because the amount of tokens in question is not significant enough to greatly impact the overall market size of the Ethereum Layer-2 scaling solution. 

At the time of writing, MATIC is changing hands at $0.8708, up by 0.93% in the past 24 hours and atop a market capitalization pegged at $8,316,903,889. Notably, the token’s trading volume is up 30% overnight to $803,317,356.

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• Source: https://thecryptobasic.com/2023/12/26/billionaire-investor-mark-cuban-sparks-polygon-selloff-scare/?utm_source=rss&utm_medium=rss&utm_campaign=billionaire-investor-mark-cuban-sparks-polygon-selloff-scare