The world’s largest cryptocurrency exchange, Binance, faces scrutiny following a staggering transfer of 1.16 billion PEPE tokens.
This movement of the meme-based currency, valued at over $12.3 million, has sparked concerns of potential market manipulation and token dump.
However, the crypto community could only speculate since Binance didn’t offer a definitive explanation for the sudden fund transfer.
While some speculate it could be a routine transfer between internal wallets, the lack of clarity fuels speculation.
Mystery Transfer on Binance Raises Eyebrows
A recent report from Whale Alert, a cryptocurrency tracker, flagged a massive transfer of 1.16 billion PEPE tokens, worth roughly $12.34 million, to Binance.
Source: Whale-Alert
Initially, this transfer came from an unclear location, fueling more speculations.
But on a close observation, things got even more interesting. Surprisingly, Binance later revealed that it owned the sender’s address, “0x835.”
Moreover, investors breathed a sigh of relief upon learning that it was merely an internal movement of funds between Binance’s cold wallets.
Source: Arkham Intelligence
There are 6.78 trillion PEPE tokens in the sender’s address, valued at $71.73 million left.
However, the destination address now holds 20.257 trillion PEPE tokens, amounting to $211.48 million. These wallets are secure storage spaces for cryptocurrencies.
The Impact of the Internal Movement Remains Unclear
Learning that the transfer was internal eased concerns about market manipulation.
However, it still sparked significant interest in PEPE.
People typically view large transfers to exchanges negatively in the crypto space.
Traders or investors interpret it as a bearish signal, indicating a potential price decline.
However, this case involved Binance moving its own PEPE holdings, not an outside investor.
So, the impact of this internal transfer on PEPE’s price remains unclear.
Nevertheless, Pepe coin has experienced a significant drop, over 16%, since the beginning of the week and down by 8.50% in the last 24 hours.
On the weekly timeframe, PEPE has declined by 15.5%.
According to CoinMarketCap, at 11:30 a.m. EST, PEPE is trading at $0.00001046.
Notably, its trading volume now sits above $1.1 billion in the past 24 hours.
Whether this decline is connected to the transfer or a market trend is yet to be determined.