A wallet linked to the Polygon founder has been identified transferring significant amounts of POL (formerly MATIC) to the Binance exchange. This transaction, confirmed by Onchain Lens, has sparked debates in the crypto world. On-chain data reveals that approximately 10 million tokens have been sent to Binance, raising concerns over a potential sell-off by the founder. Despite the upward trend in token prices, investors remain cautious in the face of these developments.
Funds Flowing from the Polygon Founder’s Wallet to Binance Stir the Market
According to Onchain Lens’s report dated December 6, a wallet allegedly linked to the Polygon founder has been carrying out periodic transfers. In one instance, it sent 10 million POL tokens, valued at $6.97 million, to Binance. The wallet address was identified as 0x883…654332.
Moreover, the same wallet reportedly received 20 million tokens (valued at $8.09 million) from Polygon three weeks ago, all of which were later transferred to Binance. Additionally, two days ago, the founder sent 50 million POL (worth $35.79 million) to this wallet, which subsequently moved 10 million of these tokens to Binance.
These large-scale transfers have raised concerns about potential sell pressure as they increase the token’s exchange supply. The wallet is still holding 30 million POL tokens, valued at $20.64 million.
How Did POL Perform Amid Transfers?
During these developments, POL experienced a 4% intraday drop, trading at $0.6820 at the time of reporting. The token’s 24-hour low and high were $0.6618 and $0.7188, respectively. This decline is linked to the sell pressure from the increasing exchange supply caused by these transactions.
As tracked on Kriptokoin.com, Polygon has achieved 17% weekly and 56% monthly gains. However, this broader uptrend contrasts sharply with the recent sell-off actions.
MATIC’s Transition to POL
As part of its focus on scalability and security, Polygon rebranded its MATIC token to POL this year. This transition aims to better reflect the network’s technical infrastructure and vision. POL builds on MATIC’s features and aims to play a more active role in network governance.
The migration process has been facilitated by support from exchanges and wallet providers, marking a strategic step in strengthening the Polygon ecosystem. POL is set to play a critical role in the network’s future innovations and developments.
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