The Fantom Foundation, which is the main driving force behind the Fantom ecosystem, has transferred 7.5 million FTM tokens to Binance, according to recent on-chain data. This is the first time since the LUNA/UST crash in May 2022 that the foundation has transferred tokens to Binance, which could be a signal that the foundation is looking to take profits ahead of a potential market reversal.
It is not uncommon for foundations to transfer tokens at local highs, as they seek to cash in on the price appreciation and secure profits before a reversal in the market occurs. This is similar to what was seen with Ethereum and the Ethereum Foundation in 2021.
The Fantom Foundation wallet transferred 7.5M $FTM($4M) to #Binance ~20 mins ago.— Lookonchain (@lookonchain) February 20, 2023
The last time Fantom Foundation transferred $FTM to $Binance was during the LUNA/UST crash in May 2022.https://t.co/fDLIs3mEXq pic.twitter.com/nonowpbZRP
Despite the recent transfer of FTM tokens, the project has shown a strong price performance on the market, having gained more than 160% since the beginning of the market-wide reversal in January. This can be attributed to the project's focus on capitalizing on the hype surrounding Layer-2 solutions and the overall strength of the altcoin market.
However, investors should be cautious as the recent transfer of FTM tokens may be a sign that the foundation believes the cryptocurrency's price has reached a local high and may soon experience a reversal. It is important to note that FTM has been on a bullish run recently, and the market may be due for a correction.
It is also worth mentioning that the recent transfer of tokens may not necessarily indicate a bearish outlook for the project, as foundations may transfer tokens for various reasons. However, the timing of the transfer suggests that the foundation is taking a cautious approach and may be looking to secure profits while the price of FTM is still high.