A major holder of BNB Chain’s native token, Binance’s $BNB, has reawakened after two years and sold a portion of their holdings on the market, raking in substantial profits and signaling an intriguing shift in the behavior of crypto whales.
According to data from on-chain analytics service Lookonchain, the whale liquidated 10,000 BNB tokens at around $230 each, netting $2.3 million from the transactions. While the whale made a considerable divestment, it still has 15,000 tokens valued at $3.5 million in its wallet.
The whale’s strategic financial moves date back to two years ago when they initially purchased 10 BNB tokens when these are at $240 a piece and traded them for a staggering 100 trillion SafeMoon tokens. The majority of these were later sold off, resulting in a hefty stockpile of 110,000 BNB then worth $47.5 million.
This considerable sale comes at a pivotal time for Binance, the world’s leading cryptocurrency exchange by trading volume. Last week, the Securities and Exchange Commission (SEC) brought a lawsuit against Binance, its U.S. counterpart, Binance.US, and the exchange’s owner, Changpeng Zhao.
The SEC’s allegations range from operating illegal exchanges and selling unregistered securities to artificially inflating trading volumes and misappropriating customer funds.
Binance has denied these allegations, expressing disappointment in the SEC’s decision to abandon a negotiated settlement process and resorting to litigation. The company has pledged to defend its platform with determination, criticizing the SEC’s regulatory approach as lacking the nuanced understanding required for such a dynamic and complex technology.
The lawsuit has led to a massive outflow of funds from the leading cryptocurrency exchange, as data revealed investors withdrew a staggering $791.6 million from Binance within a 24-hour period.
According to CCData, the SEC’s lawsuit affected the liquidity of Binance and Binance.US, with the latter seeing the liquidity of its BTC-USD trading pair decline by 85%, and the former seeing a 65.6% decline since January.
Coinbase, meanwhile, experience a miner decline in liquidity of 5.18% by June 10, according to the firm.
Featured image via Unsplash.