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Following a large purchase of MAGIC by an anonymous whale throughout the month, Binance has listed the project's token on its Innovation List. After that, users raised numerous questions, including the probability of insider trading.
According to on-chain data shared by Nansen Intern, MAGIC's price doubled in the past month thanks to a whale who has purchased almost $1 million worth of tokens in the last 30 days.
Saw that $MAGIC had ~2x'd in price in the past month, so took a look at who has been buying on #Arbitrum.— Nansen Intern 🧭 (@nansen_intern) December 12, 2022
190416.eth has bought ~$800,000 worth in the past 30 days, with most of the buying in the past 7 days.
As you can see below, there have been a lot of 6-figure purchases. pic.twitter.com/FpIekMZJOu
ENS address 190416.eth was not the only buyer on the market as six-figure purchases were a normal tendency for the token. This most likely excludes the probability of insider trading and makes Binance's listing in the Innovation Zone a conclusion rather than a cause.
What is Magic token?
MAGIC is a token for the Treasure gaming infrastructure project on Arbitrum, which includes core products like Bridge world, The Beacon and Trove. In this ecosystem, Magic acts as a governance and utility token.
After listing MAGIC in the Innovation Zone, Binance will open up trading with the token in a specific trading zone that includes innovative tokens. By separating tokens like MAGIC from regularly traded assets, Binance protects users from extensive volatility and higher risk.
Tokens listed in the Innovation Zone have a smaller market capitalization compared to top-tier assets like Cardano, Ethereum and others. As expected, Binance promotes all kinds of disclaimers prior to allowing users to trade innovative assets.
Three new spot trading pairs will be added to the trading platform. MAGIC deposits are already open, and users can start moving funds to Binance in order to gain access to spot pairs as soon as possible. Withdrawals for MAGIC will open on Dec. 13.