Binance Labs and Coinbase Engineer Are Selling These Altcoins

Binance Labs is known for investing in blockchain projects. Recently, it reportedly began offloading GMT tokens, the governance token of the STEPN app.

Recent transactions involving Binance Labs and a former Coinbase engineer have stirred the cryptocurrency market.

Is Binance Labs Selling GMT Tokens?

Spot On Chain, an on-chain analytics platform, reported that Binance Labs’ address, 0x2e5, moved 9.33 million GMT tokens worth $3.14 million to a Binance deposit address. With around 9 million GMT tokens still in its possession, the movement of these assets has led to speculation about Binance Labs’ intentions regarding its GMT holdings.

“Binance Labs, a strategic investor in STEPN, has allegedly vested 37.1 million GMT since July 2023 at ~$0.24, then deposited 28.1 million GMT to Binance at ~$0.23,” Spot on Chain explained.

Interestingly, the Binance Labs address received GMT from an unknown wallet, 0xf3c, since July 2023. Subsequently, it sent these tokens to the Binance deposit address.

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BeInCrypto has reached out to Binance Labs for clarifications but has yet to hear back.

While the motive behind these transactions remains unclear, the market has reacted. The price of GMT experienced a decline of over 4% within 24 hours following the transfers.

However, it’s important to note that the market dynamics are complex, and the actions of a single entity like Binance Labs should not be viewed as the sole catalyst for price fluctuations.

Furthermore, Max Blaushild, suspected to be a former Coinbase senior software engineer, is linked to moving 1.6 million Uniswap (UNI) tokens to Coinbase Prime, valued at about $19.7 million. These UNI tokens were reportedly released from the Uniswap treasury in September 2020.

Following these events, UNI’s price also declined by nearly 6%.

GMT and UNI Price Performance. Source: TradingView

However, it’s crucial to recognize that these individual actions are part of a larger market dynamic. For instance, Bitcoin recently dropped below $67,000, triggering over $500 million in market liquidations.

Consequently, the altcoin market has suffered, influenced by Bitcoin’s price movements. The total cryptocurrency market capitalization decreased by 6.1%, reaching $2.63 trillion.

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These market changes highlight the complex interplay of individual actions and broader market trends.

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