PANews reported on March 23 that Bounce Brand posted on the X platform that it hopes to explain the recent community concerns about the price fluctuations of AUCTION. It should be made clear that the team did not participate in any AUCTION token price manipulation. In the past few weeks, some unknown parties have accumulated more than 20% of the total supply of AUCTION. Its on-chain transfer activities and their impact on the price of AUCTON have attracted widespread attention, resulting in:
1. AUCTION trading volume soared on major exchanges. Binance spot trading volume exceeded $200 million, and AUCTION futures became the third largest trading pair after BTC and ETH;
2. Upbit's spot trading volume exceeded $500 million, surpassing BTC for several consecutive days. Upbit's large price premium led to large-scale AUCTION withdrawals from major exchanges to obtain arbitrage opportunities.
In addition, some unhealthy market conditions and liquidity imbalances:
1. Binance, the main price discovery market, has seen its hot wallet holdings fall below 10% of the total supply;
2. The borrowing interest rate has been over 80% for many years, and the financing interest rate has been maintained at -2% for many periods;
3. Major exchanges have adjusted the position limits and risk control measures for perpetual contracts.
To help stabilize market liquidity, Bounce Brand has been actively providing liquidity support to multiple exchanges. In addition, the team has voluntarily locked approximately 1.5 million AUCTION from funds and team allocations.
