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Sparkling New Address Makes Massive Ethereum Withdrawal, Is Sell-off Incoming?

Thu, 06/08/2023 - 14:20
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Godfrey Benjamin
New whale address withdraws massive Ethereum coins on account of Binance's struggles
Sparkling New Address Makes Massive Ethereum Withdrawal, Is Sell-off Incoming?
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A new address that was created earlier today is onto something worth watching on the Ethereum network. According to insights shared by crypto analytics service provider Lookonchain, one of the first actions the wallet address made was to withdraw a total of 20,000 ETH tokens worth approximately $36.86 million from the Binance exchange.

While it is uncertain whether the address consolidated the funds in it after buying Ethereum based on the Fear, Uncertainty and Doubt (FUD) that permeated the industry, the withdrawal has garnered a number of speculations, including whether or not the whale used the withdrawn asset to escape the current uncertainty surrounding Binance.

With the withdrawal, fears of a ripple effect in sell-offs are growing, a move that could drive the fall of Ethereum.

It has been a very turbulent week for Binance exchange and the broader digital currency ecosystem, with the United States Securities and Exchange Commission (SEC) filing a lawsuit against the trading platform. Drawing on the allegations, the SEC claimed Binance was operating illegally in the United States and that it was involved in the trading of unregistered securities in the form of crypto tokens.

With the lawsuit, Binance exchange is faced with two distinctive options: to challenge the SEC's claims in court or push for a fair settlement and reparation. Either option has placed Binance in a state of uncertainty that is capable of stirring sell-offs and withdrawals from its platform.

Binance CEO Behind Something Extremely Sketchy, SEC Confirms

Rising above charges

Binance has a number of unique features that make it stand out in the industry, and two of these are the fact that it is the biggest trading platform and the most attacked by critics in the media and American regulators.

A few months ago, the U.S. Commodity Futures Trading Commission (CFTC) also charged Binance exchange in a related suit, but the firm was able to rise from the FUD that emanated from the charges at the time.

While both cases are still active, industry leaders have projected that the case is incapable of hurting Binance significantly as Jim Cramer claims and, as such, there is a high possibility it will rise above these charges in the long term.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.