Matic Network Seeks Support and Unification From the Ethereum Blockchain Community
By: Perry Hessenauer
Tags: Matic Network, Ethereum Blockchain, Blockchain, Matic Cz Binance, Scalability

As is common knowledge in the wider Crypto community, Matic Network’s native token plunged 70% on the 10th of December. This was unprecedented in many respects and was totally unexpected even by those who are regarded as experts. It is conceded that many experts did foresee some sort of drop in price, possibly 10% or even 20% but the massive plunge initially left the community shocked and disturbed. In an effort to restore trust and confidence in the project Matic seeks support and unification from the Ethereum Blockchain Community.

At first, it was thought that the Matic team themselves had sold off huge amounts of tokens, but this was proved to be incorrect. CZ of Binance (Twitter) made the following statement on Twitter “Our team is still investigating the data, but it’s already clear that the MATIC team has nothing to do with it. A number of big traders panicked, causing a cycle. Going to be a tough call on how much an exchange should interfere with people’s trading.” After further investigation it was determined that, at the time of the dump, malicious and false rumours were started on Twitter which created panic; which resulted in whales dumping and the market following. The unfortunate event to the minds of many was an attack on Matic that was clearly manipulated, planned, and orchestrated.

Sandeep Nailwal (Matic Blog 2019) to corroborate the tweet by CZ made the following statement and provided evidence that the Matic team was not responsible; “We want to strongly state that the allegations of token movement from our Foundation account, made by a FUD account against Matic team are completely baseless. Even Binance confirmed it. As for the Token movements, We already announced that there will be a release of 2.5% (248mn) tokens as communicated in our post, which coincides with the aggregated outward movement.”

The false erroneous statements spread on Twitter stated that the team had transferred 1.3 billion tokens to Binance and that the team was going to sell them; it was advised to dump before the team. This resulted in several whales dumping and thus the panic which resulted in the Matic price crash. The team tokens are still in the address that they provided for the community in their efforts to be completely transparent. The mentioned address can be located here https://etherscan.io/address/0xB316FA9FA91700D7084D377BFDC81EB9F232F5FF

The above explanation covers to a large extent what actually happened; however, other circumstances may also have contributed, for example, the shorts market which triggered stop losses at the time of the crash.

In an effort to restore trust and confidence in the project Matic seeks solidarity from the Ethereum Blockchain Community. The Matic teams’ primary purpose is to provide a layer 2 solution for the Ethereum layer 1 existing problems which are preventing mass adoption of numerous applications. Matic provides a side chain network on the Ethereum Blockchain purposefully designed to remove existing problems and enhance the functionality and efficiency of all existing decentralized applications (Dapps) which are remapping the world’s technological landscape. In other words, Matic is providing technological advancement sorely needed by Dapps to achieve future success.

Matic is a part of the Ethereum Blockchain and should be accepted and adopted, rather than seen as some kind of opposition or threat. Ethereum the world’s most used blockchain needs to retain its dominance and outstanding projects such as Matic make this possible. Although there are numerous reasons for this, three main ones thrust themselves for attention. They are scalability, slow transaction speeds if the network is busy, and higher than necessary transaction fees. In an article written by Jaynti Kanani in 2018 he makes the following observation:

Blockchain Smart contract platforms and cryptocurrencies have captured mass attention but still haven’t been able to achieve mass adoption due to scalability and user experience issues. Even on Ethereum, which is the most widely used smart contracts platform, there have been no significant Dapps which have seen mass adoption. There have been a few cases where one or the other application temporarily succeeded in achieving a significant user base, but it led to crippling of the entire network during the high load times. Essentially meaning that even the most advanced and widely used platforms are not ready for mass adoption.

The same article by Kanani (2018) highlighted some of the keys features of Matic

As previously stated, although much progress is being made by Dapps, it is still not sufficient to scale the demand for mass adoption. Matic solves the following problems that are hindering advancement: Scalability (Bitcoin 4.6; Ethereum 15; Matic 10 000), slow transactions, high transaction fees, low transaction throughput, poor usability, enabling multiple micropayments.

In summary, Matic is providing a solution to a major problem. The solution is innovative and visionary; an enhancement to Dapps that are built on the Ethereum Blockchain and other blockchains. Matic is at the forefront of blockchain technology advancement; led by a highly capable and effective team.

If you are keen to transition from a layer 1 to a layer 2 Dapp then show your support and unification for the project by contacting a member of the Matic team. Matic will make your product fully scalable, save you a lot of money in fees and remove the issues related to slow transactions and throughput, along with numerous other advantages that will place your Dapp in a solid position for future success.

Screenshot of some of the Matic Team from the website https://matic.network/about

Contact information

https://matic.network/about

https://matic.network

References

Matic Foundation Tokens address: https://etherscan.io/address/0xB316FA9FA91700D7084D377BFDC81EB9F232F5FF

Sandeep Nailwal statement regarding token movement allegations https://blog.matic.network/foundation-token-movement-accounting

What is Matic

https://medium.com/matic-network/what-is-matic-network-466a2c493ae1

https://blog.matic.network/what-is-matic-network/

CZ Binance Tweet

https://t.co/wOVF6tEBkQ