MATIC and gold-backed cryptocurrencies acted as a safe haven in the FTX crisis. Cryptocurrency investors profited from these tokens in the hours when Bitcoin dropped to $16,000.
These altcoins were safe haven in the FTX crisis
The cryptocurrency market was rocked by the bankruptcy of FTX in November. There is a strong demand for gold-backed tokens right now, as reserve-backed cryptocurrencies are one step ahead. The gold price rose 8.51% over a seven-day period as the cryptocurrency market was hit by the FTX crisis. In the process, it climbed from its low of $1,628.40 to $1,766.92. During the same period, the Pax Gold (PAXG) price also rose from $1,624.93 to $1,767.30. Tokenized gold has largely followed the price of physical gold.
Each PAXG token is backed by one ounce of the 400 ounce London Good Delivery gold bar stored in Brink’s vaults. This provides more trust alongside cryptocurrencies that use tokens as collateral. Investors are increasingly inclined to cryptocurrencies backed by physical gold. This is because gold tokens also closely follow physical gold price movements.
Polygon (MATIC) was among the highlights in the crash
During the crisis and the sales it caused, MATIC, which caught a strong trend with its latest partnerships, was at the forefront. The Ethereum scaling solution has emerged as one of the crisis-proof protocols. Last Thursday, Instagram’s parent company Meta partnered with Polygon to add NFT features to its platform. The altcoin project announced on November 11 that it is working with Disney to develop a proof-of-concept for digital collectibles.
The MAGIC continues! 🪄✨
Polygon is working w/ @WaltDisneyCo after participating in @DisneyAccel 🫱🏾🫲🏼
For starters, we’re developing a proof of concept for EXCLUSIVE digital collectibles to recognize Disney employees during special occasions ✨— Polygon – MATIC 💜 (@0xPolygon) November 11, 2022
MATIC has been able to survive the FTX crisis strongly as a result of major partnership announcements. Data from TradingView shows it is currently 15% more valuable since Nov. Despite the 6% loss in the last 24 hours, MATIC price is trading above the $0.9 zone. It managed to climb as high as $1.3 at one point in the Meta and Disney announcements above.
Meanwhile, MATIC price managed to stay in the green throughout November. It fell just 21% from its local top of 1.30 after the Meta announcement. It is worth noting that this is despite the over 50% losses in the market despite the FTX crisis. However, the project’s recent moves offer a valid use case that could attract new entrants. Thus, it helps to increase the level of flexibility. This benefits the altcoin market as a whole. Sandeep Nailwal, co-founder of Polygon, noted in a tweet:
The added value to the creative economy is unmatched, and advocating verifiable digital ownership on a platform with such reach will help us further our goal of engaging the next billion users on the Web3.
