Binance Labs transferred $7.29 million worth of GMT holdings to the Binance exchange, effectively ending its partnership with the project. Despite favorable market conditions, the transfer caused a sharp decline in the altcoin’s price.
GMT Price Drops Amid Rising Altcoin Market Following Binance Transfer
Recently, Binance Labs had built a portfolio worth $16.05 million, consisting of 75 million tokens. However, today’s 30 million GMT transfer indicates the complete severance of ties with the project.
GMT (Green Metaverse Token), which popularized the “move-to-earn” model, incentivizes users to engage in physical activities by rewarding them with cryptocurrency. However, Binance Labs’ withdrawal has raised questions about the project’s future. At the time of the transfer, GMT’s price was approximately $0.214. Over the past 24 hours, the price dropped by more than 5%, from $0.2472 to $0.2338. The 24-hour high and low prices for GMT were $0.2633 and $0.2338, respectively.
The sharp decline in GMT’s price comes during a period of growth in the altcoin market. As previously reported by Kriptokoin.com, Bitcoin surpassed the $100,000 mark for the first time on October 5. Despite its decline, GMT has achieved impressive gains of 26% over the past week and 112% over the past month. With a market capitalization of $625 million and a daily trading volume of $132 million, GMT continues to draw attention.
Rug Pull Allegations Cause Sharp Drop in Hawk Tuah’s Price
While GMT experienced a price drop, a meme coin called Hawk Tuah lost over 90% of its value. Launched on December 4, the altcoin quickly reached a market cap of $490 million but soon faced a sharp decline. According to DexScreener data, a 91% sell-off occurred in less than three hours. Allegations suggest that the project’s team orchestrated one of the year’s largest rug pull operations using the meme coin.
Following the incident, founder Haliey Welch stated on December 5 that no token sales had been made by her. She also claimed that no free tokens were distributed to influencers. Welch explained that the token was launched via the decentralized liquidity protocol Meteora to reduce purchasing risks.
However, data from Solana blockchain analysis tool Solscanner revealed that a single wallet purchased 17.5% of the HAWK tokens seconds after the token’s launch. The transaction used 4,195 Wrapped Solana (WSOL), worth $993,000 at the time. Within two hours of the launch, the wallet owner sold 85% of the tokens, profiting $1.3 million.
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