Why Is LOOM Dumping? Upbit Reportedly Deposited 19M LOOM Into Binance and Bithumb

After what was a scintillating uptrend in the past three weeks for the Ethereum-based multichain platform LOOM Network (LOOM), the token price has dropped 35% in the past two days. The reason behind the plunge might be related to a post from on-chain analyst Scopescan, which revealed that South Korea’s largest crypto exchange, Upbit, deposited 19 million LOOM (worth $6.76 million) into Binance and Bithumb.

“LOOM has fallen by 35% in the past two days. We’ve noticed that Upbit has been depositing LOOM into Binance and Bithumb more frequently in the last 48 hours, with over 120 transactions totaling approximately 19M LOOM ($6.76M),” Scopescan tweeted.

Scopescan stated that Upbit frequently deposited LOOM into several wallets belonging to exchanges Binance and Bithumb in the last 24 hours. In what were up to 120 transactions, Upbit sent the token to 14 Bithumb and 3 Binance wallets.

Sudden Pump

Before the downtrend, the project pumped more than 700% from what was a dormant state for years. LOOM sold at $0.046 on September 16 before reaching and surpassing its all-time high of $0.2 in less than three weeks. The token ticked to $0.37, then plunged rapidly in the last 48 hours.

The reason behind the sudden pump is yet to be ascertained, but notably, up to 53.8% of its spot trading volume came from Upbit’s LOOM/KRW trading pair during the early uptrend. The price uptick also drew Binance’s attention, and it listed LOOM/USDT for futures trading on October 11.

Pump and Dump?

Since there was no notable reason behind the recent price uptrend, many have speculated that the movement was manipulated and LOOM would start dumping hard soon. Reduced on-chain developer activity on LOOM has also sparked speculation as to the sustenance of this uptrend.

Since its highest holder, Upbit has started moving the token to exchanges, general sentiments indicate that the coin should dump even further in the coming days.