Nillion (NIL) crashes 50% after unauthorized market-maker dump

Amidst intensifying broader downtrends, Nillion’s community woke up to devastating updates as native NIL lost roughly 50% of its value within a day, a development that has puzzled the project’s team and traders.

While digital assets maintain downtrends, the Nillion team has emphasized that routine volatility didn’t trigger the dip, but behind-the-scenes action that occurred without their authorization.

In today’s statement released on X, Nillion stated that the price action initially confused them until they discovered the catalyst.

Notably, a market maker dumped NIL assets at a scale without approval from the Nillion Association.

An unauthorized token sale rattles Nillion

The team described the massive sell-off as against agreements, adding that the involved partners ignored communications during and after the transaction.

The official announcement read:

Our entire team was confused until we realized what happened: a market maker sold NIL tokens without legal authorization from the Nillion Association. Then, refusing to respond to any team communications during the flash sell and the hours following.

Failure to reach out to the market maker magnified concerns, leaving the team fighting to handle the situation as NIL experienced a free-fall.

While market makers support projects by ensuring stable liquidity, Nillion did the opposite. That has hurt the project and its community.

Immediate buybacks to the rescue

The Nillion team isn’t making empty reassurance. The association said that it has started buying back NIL tokens dumped during the unauthorized selloff.

The goal is to absorb the forced supply and lessen the impact on NIL’s prevailing liquidity.

Further, the project has promised to use all capital retrieved from the partner to conduct more asset buybacks.

Involved accounts frozen in a legal move

The team has acted quickly, spending overnight to cooperating with exchanges to suspend all wallets linked to this event.

They’re also pursuing legal actions, an uncommon move in an industry where clashes between liquidity providers and projects often remain under the radar.

NIL price outlook

Nillion’s token took a sharp decline from $0.1868 to a low of $0.09221, a 50% slide, on its daily chart following the market marker’s sell-off.

NIL is trading at $0.1232 after a brief recovery, likely fueled by the team’s swift response.

Its 24-hour trading volume has increased by a staggering 670%.

That signals heightened speculative trader activity amid the intense volatility.

Enthusiasts will watch the alt’s performance in the coming sessions, with buyback and legal moves in focus.

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