A wallet linked to Polygon’s founder moved a significant amount of POL (formerly MATIC) tokens, sparking discussions across the global crypto community. On-chain data reveals that nearly 10 million POL tokens, worth approximately $6.97 million, were transferred to Binance, raising concerns of a potential market dump by one of the project’s key figures. This development comes amid an ongoing price rally, leaving investors and traders divided on the implications for the token’s future.
Massive Token Movement Raises Eyebrows
On December 6, Onchain Lens highlighted the transaction, revealing that the wallet address 0x883….654332, associated with the Polygon founder, received a massive influx of tokens in recent weeks. The wallet had initially received 20 million POL tokens, valued at $8.09 million, from Polygon itself three weeks ago, all of which were deposited into Binance. Just two days ago, the same wallet address received an additional 50 million tokens worth $35.79 million from the founder’s Multisign wallet. Of this, 10 million POL tokens, worth $7.17 million, were subsequently transferred to Binance.
These large transfers to a major crypto exchange have sparked significant concern in the market. Such moves increase the token’s exchange supply, potentially indicating a selloff strategy, which could put downward pressure on prices in the short term. At present, the wallet still holds 30 million POL tokens, valued at $20.64 million, raising further speculation about the intent behind these transfers.
Also Read: Polygon (POL) Could See 10X Surge in Current Bull Cycle, Analyst Predicts: Key Resistance at $0.768
POL Price Action Amid Concerns
At the time of writing, POL is trading at $0.6820, having fallen nearly 4% on the day. Its 24-hour price range fluctuated between $0.6618 and $0.7188. This price dip aligns with the increase in exchange supply driven by the large wallet movements. However, broader charts show a more optimistic trend, with POL posting gains of 17% over the past week and 56% over the past month.
Despite this positive momentum, the massive wallet movements have sparked mixed reactions from investors. Some remain cautious, anticipating that the price may face downward pressure once the founder begins selling off tokens. Meanwhile, reports indicate that Polygon whales began accumulating POL at the $0.44 mark, fueling expectations of further gains before any potential selloff negatively impacts the price.
As the situation unfolds, market participants remain on edge, closely monitoring further movements and market sentiment around Polygon’s token.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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