As it turns out, thanks to a report from Whale Alert, a massive 50,000 Ethereum (ETH) tokens have just landed on the world's largest cryptocurrency exchange, Binance. What is fascinating, though, is the fact that the sender is an unknown entity, according to the initial report.
A colossal amount of Ethereum tokens worth over $127 million was sent from address "0xE69," which Whale Alert identifies as unknown, to 0x28C, which apparently belongs to Binance.
Gamza KhanzadaevIn the common sense of crypto market participants, such transfers - from an unknown wallet to an exchange - are seen as a signal that a large investor is getting rid of their holdings, using the most liquid place to do so, the exchange.
Naturally, this is perceived as a bearish sign and can cause fear, uncertainty and doubt among traders.
Catch
However, in this particular case, a deeper look into the on-chain realms reveals a slightly different picture.
Digging into Arkham Intelligence's data, it turns out that the stunning transfer may be nothing more than the internal operations of the black and yellow crypto giant.
As it stands, both addresses belong to none other than Binance itself, with the mysterious sender's wallets identified as the exchange's internal storage.
This completely changes the situation, as the internal transfer between the exchange's own wallets can hardly be called a worrying sign and trigger a sell-off, even against the negative background that the ETH token is currently experiencing.
On the other hand, it is worth staying vigilant in case there are more manipulations like this to come.
Yuri Molchan
Tomiwabold Olajide
Dan Burgin
Alex Dovbnya
Vladislav Sopov