Helium: Binance False Payments Have These Effects on HNT Performance

Helium: Binance False Payments Have These Effects on HNT Performance

Binance, the leading cryptocurrency exchange, has since September 16 made a big mistake that made some users profitable. According to new reports , Binance mistakenly paid around 4.8 million Helium tokens [HNT] to some users. Many of these users took advantage of the situation and sold alts for a profit. 

The erroneous payments were due to an accounting error on the exchange, according to the report. 

The Helium network has two tokens. This is the HNT token, which is paid by the network to its hotspot servers. The second is the MOBILE token, which is paid to operators of the network's 5G infrastructure. Although closely linked, these properties are distinct.

On September 16, Binance mistakenly “counted them as one”, – HNT. This erroneous belief led MOBILE depositors to the Binance address to receive the corresponding amount of "Most Valuable HNT".

 

As a result of this bug, 4.8 million $19 million worth of HNT tokens were sent to users.  

How did the HNT react?

At press time, HNT is trading at $4.24, data from CoinMarketCap reveals. During the trading session on September 16, the native token was sold for as low as $3.94 per token.

Since the news of the erroneous payments broke, HNT has not seen the price rise or fall much. In fact, in the past 24 hours, the price of HNT has increased by 1%. However, trading volume during the window period also decreased by 12%. 

According to Santiment data , the price of HNT has fallen by more than 135% in the past three months. Over a 90-day period, the asset recorded its highest daily trading volume on September 7, when the price temporarily dropped. Since then, however, the asset's price and trading volume have declined.

Source: Emotions

It's business as usual

Down 92% from its all-time high, HNT continues its 9-month decline. Although after the erroneous HNT payment, many users on Binance started selling the paid HNT tokens for profit.

Additionally, the relative Strength Index (RSI) and Money Flow Index (MFI) of the asset are flat on the daily chart. However, these indicators are placed in positions that indicate increased selling pressure. At the time of this writing, the RSI and the MFI are 39 and 58, respectively. 

However, looking at the asset's moving average convergence divergence (MACD) shows a bullish crossover of the MACD and the trendline on September 8. With the price marked by the histogram bars green since then, the bulls might also be trying to make a comeback. . 

Source: TradingView

 

Sep 17, 2022

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