REEF: Post mortem of the dump
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.
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%:
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.
These moves can be easily observed with Santiment metrics, Transaction Volume and Exchange Inflow:
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?
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:
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:
Whales aren't really showing any signs of whole sale panic just yet:
It seems that REEF is looking good overall today.
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.