Polygon [POL] just became a US-regulated payments business. The native token didn’t hear the news, and dropped 7%.
Here’s the rundown.
Polygon price slides 7% to $0.095
Let’s take a good look at the damage. POL was at $0.102 on October 11. At the time of writing, POL was down to $0.0948. That’s a 7% hit.
Note, it wasn’t for lack of trying. POL attempted to recover on October 12 and 13, but selling pressure prevented either rebound from lasting.
From the 13th onward, it just got slower. On the day of writing, things got ugly as POL fell close to $0.090. It’s clawed back a bit since, even poking near $0.097 for a moment. That didn’t stick.
The indicators didn’t give much to write home about. RSI was at 44.9, near neutral. Chaikin Money Flow was at -0.11. It jumped up just a bit during that last bounce, then dropped right back into the red.
The futures crowd doesn’t look too happy either. Open Interest went to $50 million on the 12th. It’s only fallen ever since. Funding has also been in flux all week, so there’s a lack of concrete confidence in the token.
Polygon and the Coinme deal
Polygon Labs has just wrapped up its acquisition of Coinme.
Through Coinme, Polygon Labs now has regulated infrastructure for converting dollars into digital assets and back across 48 US states, subject to the applicable licensing requirements.
How does that work? Coinme has 37 money transmitter licenses and 11 exemptions. The business is also registered with FinCEN as a money services business.
Coinme is now part of Polygon’s Open Money Stack. It already has its first users: Tazapay, Mesh, Toku and Kira.
For context, Polygon agreed to buy Coinme and Sequence (a wallet provider) for over $250 million together. It cut some roles too. CEO Marc Boiron said the plan was to turn Polygon into a payments-focused blockchain.
Ten months later, that plan is real; except the token hasn’t yet caught on.
Final Summary
- Polygon price fell about 7%.
- This comes in the same stretch as the Coinme acquisition announcement.