In a recent development that has raised eyebrows in the crypto community, a suspected MakerDAO multisignature wallet has been observed transferring significant amounts of Maker (MKR) tokens to various exchanges. Following these transfers, the price of MKR has experienced a notable decline.
According to a tweet by Spot On Chain, a crypto analytics firm, a multisignature wallet with the address 0xbba, believed to be associated with MakerDAO, has been consistently moving MKR tokens out of its holdings before notable price drops. Over the past two weeks, this wallet has sent a total of 4,535 MKR tokens, equivalent to approximately $14.4 million at current market prices, to Wintermute Trading.
Subsequently, Wintermute Trading has deposited these tokens to centralized exchanges (CEX) such as Binance, Coinbase, and Kraken. The tweet from Spot On Chain further suggested a correlation between these transfers and the subsequent drops in the MKR price. The data indicates that the price of MKR tended to decline following these deposits to exchanges, hinting at potential sell-offs or market pressure resulting from the increased supply of MKR tokens on the market.
Potential Future Transfers Suspected
As of now, the suspected MakerDAO multisignature wallet still holds 21,928 MKR tokens, with an estimated market value of $65.8 million. Given the recent pattern of transfers and the remaining balance in the wallet, there are concerns that more tokens might be moved out in the near future, which could further impact the MKR price.
MakerDAO, a decentralized autonomous organization behind the stablecoin DAI, has not yet commented on the matter. It remains to be seen whether these transfers are part of a broader strategy by MakerDAO or if they represent individual actions by the wallet’s owners or managers. The crypto community is closely watching these developments, as any significant movements of tokens by large stakeholders can have a substantial impact on market dynamics.
Whales Joining the Selling Spree
In a fresh update from Spot On Chain, it appears that the MKR market is facing additional selling pressure from large holders, commonly referred to as whales. Besides the suspected MakerDAO multisignature wallet, two significant whales have been detected selling MKR tokens over the past 26 hours.
Spot On Chain tweeted that two whales collectively sold 3,075 MKR tokens, equivalent to approximately $9.34 million, in stablecoins USDT and DAI. The average sale price was recorded at $3,039 per MKR token. Interestingly, each of these sales has been associated with a sudden drop in the MKR price, indicating the significant impact that large-scale selling by whales can have on market dynamics.
With multiple large stakeholders now actively selling MKR tokens, the market is witnessing heightened volatility and downward pressure on the MKR price. These developments further underscore the importance of closely monitoring the situation and understanding the motives behind these substantial token sales.
As the selling spree continues and more whales join in, the MKR community and investors are advised to exercise caution and stay updated with the latest developments to make informed trading decisions. The involvement of multiple large holders in selling their MKR holdings adds another layer of complexity to the current market situation, which already faces uncertainty due to the earlier transfers from the suspected MakerDAO wallet.
