Market Buzz: Whale Deposits $21 Million in DeFi Tokens to Binance, Speculated to Be Justin Sun
In the early hours of Monday, a dormant whale made waves by transferring $21 million worth of four DeFi tokens to cryptocurrency exchange Binance. This move sparked mixed reactions within the community, with concerns of an impending sell-off amid the recent crypto market pullback.
On Monday, blockchain analysis firm Spotonchain reported that a long-inactive whale deposited approximately $13 million in cryptocurrencies to Binance. After holding these assets for a year, the whale sent 3,800 Maker (MKR) and 20,000 Aave (AAVE) tokens to the exchange.
Further investigation by the firm suggested that the whale might be Tron founder Justin Sun. It is believed that three of the 13 addresses associated with Sun were involved in these transactions.
According to the report, the whale deposited $21 million worth of four DeFi tokens to Binance within 30 minutes. The addresses transferred 93,979 AAVE, valued at around $11.26 million, and 3,800 MKR tokens.
These addresses acquired the MKR tokens in June 2023 for $2.43 million, with an average purchase price of $641.81 per token, totaling 3,800 tokens. During the period from June 2023 to January 2024, the average price for the AAVE tokens was $87.14.
As of the time of reporting, the estimated profit for the whale stands at approximately $7 million, with $6.74 million from MKR and $252,000 from AAVE.
In addition, Sun also transferred over 4,000 Compound (COMP) and 200,000 Liquity (LQTY) tokens to the exchange. These transactions included 4,178 COMP, valued at around $245,000, and 203,823 LQTY, worth approximately $217,000.
These deposits have raised concerns within the cryptocurrency community, as exchange deposits are often seen as bearish signals. If sold, they could significantly depress token prices.
However, some view Sun’s actions as a bullish sign. One user on the X platform expressed optimism, suggesting that whales “always deposit during the consolidation phase before a breakout.”
It’s worth noting that the community closely monitors the on-chain activities of Tron’s founder. According to NewsBTC, Sun is suspected of being behind substantial Ethereum (ETH) purchases in the first quarter of 2024, reportedly acquiring over $891 million worth of ETH during a buying spree.
Despite the community’s reaction, the deposit of these four DeFi tokens to Binance did not significantly impact trading activities.
