What happened to $POWER ‌?


$POWER plummeted from $3 to $0.17 in just 48 hours.
Unblocking of $23M tokens is scheduled for March 5, and it seems the market has already started to price this in.
Before the crash, $POWER was trading in the range of $1.85–$2.25 and appeared stable. Then, funding rates soared to -8,000% and -20,000%, indicating that traders were paying huge premiums for short positions.
Open interest increased from approximately 35 million to over 65 million POWER, signaling a surge of new short positions. But due to the rapid price decline, the USD value of OI dropped from $80M to about $40 million.
Arbitrage traders usually step in since perpetual contracts were about 7% below spot. However, due to weak spot liquidity and limited borrowing, hedging was impossible, and the imbalance continued to grow.
The most likely explanation is a simple scenario: the team or early investors anticipated the upcoming unlock and started selling in advance.
POWER6,66%
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