The blockchain gaming platform Ronin, crafted by Sky Mavis, the developer behind Axie Infinity, has managed to maintain the momentum of its native token (RON) despite encountering hurdles during its recent listing on the cryptocurrency exchange Binance.
On February 7th, the price of Ronin tokens experienced significant fluctuations, plummeting by over 40% to $2.52 following a 28% increase the previous week. As of the time of this report, RON is currently trading at $2.54.
Insider Trading Fallout and Exchange Response
Before its listing, a combination of observable token accumulation on blockchain scanners and leaked communications from Binance resulted in insiders accumulating RON, subsequently selling it off swiftly post-listing, causing a decline in its value.
In response, Yi He, the co-founder of Binance and spouse of former CEO Changpeng Zhao, announced that the exchange would implement stricter internal controls to prevent information leaks, separating the listing team from project research teams. He also stated that if listing information were to leak, the listing would be canceled, and any subsequent leaks would result in extensions to pending listings.
感谢今天所有关心币安，热爱币安，支持币安的朋友们，也收到了很多建议，我都有认真一条条看。过去偶尔有关于币安上币信息泄漏的激烈讨论，通常是一些尚未发布代币的项目，社区为了保持热度过度宣传并不鲜见；但今天RONIN上币公告发布后RONIN价格下跌引发了社区激烈讨论，经过内部调查发现是之前集成公…
— Yi He (@heyibinance) February 5, 2024
Aleksander Larsen, co-founder of Sky Mavis, in his letter to Cointelegraph, highlighted that Ronin has emerged as one of the most utilized gaming chains and that the Binance listing was anticipated. The project aims to partner with 16 studios and games in 2024, with plans to open up the Ronin network for game deployment by year-end, integrating successful games into the Mavis Hub.
Strategic Expansion and TVL Dynamics
Despite a rebound in token price from its low point of $0.45 in October 2023, Ronin’s total value locked (TVL) remains subdued. A significant setback occurred in March 2022 when North Korean hackers exploited the Ronin Bridge, resulting in a $600 million heist. Coupled with a broader decline in cryptocurrency prices, Ronin’s TVL dropped from nearly $1.5 billion at the start of 2022 to less than $50 million by year-end. At present, the metric stands at $156 million, with the Katana decentralized exchange accounting for over 99% of locked funds.
Larsen emphasized that, as a gaming-oriented chain, competing for TVL with DeFi chains is not a primary focus for Ronin. He highlighted Katana’s native DEX on the Ronin Network, which is designed to provide sufficient liquidity for player-to-player trading, with $RON serving as LP rewards.
Addressing user security concerns since the 2022 heist, Larsen noted that all code has undergone thorough review and optimization, with security experts auditing the entire architecture. Additionally, a circuit breaker system has been implemented to restrict daily withdrawals, and the bridge smart contract has been updated to allow validators to set withdrawal limits. Larsen expressed confidence in Ronin’s resilience, despite a portion of the stolen funds remaining unrecovered.
