The Ronin blockchain’s native token, RON, faced significant price fluctuations after being listed on the Binance cryptocurrency exchange on February 5th. The token saw an initial surge of 28% during the previous week in anticipation of the listing. However, soon after the listing, RON prices plunged over 40%, falling to $2.52.
According to crypto market analyst John Larsen, RON encountered the $3.50 resistance level after rising to a high of $3.34 on February 4th. The mounting sell pressure brought the price below this threshold. Despite the steep decline, RON leveraged the $2.5 support to prevent further drops.
Larsen believes the aftermath of the 2022 Ronin bridge hack contributed to the token’s lackluster price performance. The exploit allowed North Korean hackers to steal $600 million worth of crypto assets. This hack, combined with falling crypto prices, caused Ronin’s total value locked (TVL) to plunge from nearly $1.5 billion to under $50 million by end-2022.
Currently, Ronin’s TVL stands at $156 million, with over 99% coming from the Katana decentralized exchange. However, driving TVL growth is not a priority for the Ronin team right now according to Larsen. Instead, they aim to rebuild trust and confidence in the network after last year’s breach.
The recent RON volatility has sparked insider trading allegations against Binance. Some users observed unusual RON accumulation patterns on-chain data before the listing announcement. This fueled speculation that insiders bought tokens anticipating the Binance listing pump.
To address these concerns, Binance co-founder Yi He announced stricter controls around new asset listings. Information leaks could now result in cancellations or delays. Yi He also launched a bounty program rewarding tips for exposing corrupt staff behavior with rewards up to $5 million.
The measures intend to bolster trust in Binance after recent legal troubles, including money laundering charges against former CEO Changpeng Zhao. However, rebuilding public confidence remains an uphill battle for the embattled exchange.
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