REEF: Post mortem of the dump

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Garry Kabankin
Mar 16, 2021

Assets covered: Reef Finance (REEF)

Metrics used: Exchange Inflow, Transaction Volume, Top Token Transactions, Network Profit or Loss, Active Addresses, Whale Transactions Count, Holders Distribution.

TLDR: Reef Finance just getting stronger

You could probably read the news of Alameda investing into Reef Finance several days ago. The amount mentioned was $20 million in REEF tokens. The crowd reacted accordingly, pumping Reef Finance around 25% that day.

REEF price reaction to March 12th news. Source: Sanbase

A few days later Alameda released a statement that they do not have any deals with Reef. Another side responded similarly. Price dumped around 30%:

Reef price reaction to March 15th news. Source: Sanbase.

What happened? Long story short: sides lost agreement in the middle of the deal.

Alameda have got REEF with discount and immediately deposited all to Binance. This surprised Reef Finance and they rejected to transfer next tranches of tokens.

Reef point of view. Alameda research view.

These moves can be easily observed with Santiment metrics, Transaction Volume and Exchange Inflow:

REEF moves visualized with Transaction Volume and Exchange Inflow. Source: Sanbase

We can see that this huge REEF deposit did not actually dump the price. Onchain data can never say are tokens on a centralized exchange being sold or just sitting there.

Another way to spot these moves is using the Top Token Transactions table:

0xd5050910347ecaf024421bc5e8f2b2e2e12ea8cb (Reef Finance: Deployer) → 0x94e509b0f855297c0b99ab61bff027e0ad114121 (Alameda) → 0x3f5ce5fbfe3e9af3971dd833d26ba9b5c936f0be (Binance)

Alright, so what happened after the dump?

REEF Exchange Inflow. Source: Sanbase
REEF Network Profit or Loss. Source: Sanbase

Both charts are indicating there's a lot of panic about REEF. And if we look at overall token fundamentals, it might be an opportune time to consider some exposure.

Like Active Addresses had been declining for a while but now they are in uptick:

REEF Active Addresses. Source: Sanbase

Obviously you need to wait and see because last spike is probably just dump related. But if it continues to grow REEF could be considered as a coin with a nice potential.

We could also see that Whales actually probably did most of the dumping, during the actual period of the dump, because we didn't see to many spikes in exchange inflow:

REEF Whale Transactions count. Source: Sanbase

Whales aren't really showing any signs of whole sale panic just yet:

1M to 10M REEF Holders Distribution. Source: Sanbase

It seems that REEF is looking good overall today.

Take care.

Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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Garry Kabankin
Mar 16, 2021

Thanks for reading!

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