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Questions are being asked about the rapid outflows of DOGE tokens from Binance, and what happens to them as well.
On-chain data found a Dogecoin whale made a big withdrawal from Binance today that may end up benefiting the memecoin’s price.
According to data from Whale Alert, a crypto transfer tracker service, the Dogecoin blockchain has seen an extra-large transaction within the past day.
In this move, the network has processed the movement of 304,588,737 DOGE, worth around $52.3 million at the time when the transfer was made. As such a large transfer, a whale probably took part in it.
These whales on the network are influential with the huge number of tokens they hold. As a result, their moves are worth watching because they can lead to changes in the market’s trends.
Whether a mammoth entity is buying or disposing of assets likes this depends on how it makes use of those maneuvers. But no one can be certain about what an investor plans actually to do.
The types of addresses involved in the transaction, however, may provide a clue as to what the whale wanted to do with its money.
Below are the particulars of the last Dogecoin whale transaction, revealing its relevant addresses.
As we can see from the picture, this Dogecoin transaction was initiated from the wallet of Binance, which is a centralized cryptocurrency exchange. The move’s destination looks to be a couple of unknown addresses.
An “unknown address” here signifies that the wallet is not affiliated with any centralized entity such as an exchange. (The sender in this transfer is a “known” wallet, given it’s attached to a Binance.) Generally speaking, these kinds of addresses are the investors’ own wallets for storing coins.
Transfers where coins go from exchanges into investor-controlled wallets are known as “exchange outflows.” Investors tend to do this when they are planning to hold onto their coins long-term because, on the platform, the wallets are controlled by platforms and so on. Its riskier to do so.
Exchanges outflows can also be a sign that fresh buying is going on from time to time, as some investors seek immediate withdrawal after purchase.
Given the scale of the current outflow of Dogecoin from the exchange that is massive, if the whale entity does indeed buy here, it could naturally be good news for investors.
However, there’s also the possibility that it has withdrawn to sell via P2P mode. In this case, the impact on the market could be rather bearish.
DOGE Price
At the time of writing, Dogecoin $$0.176, down -16% over 7 Days.
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