The independent investment arm of Binance, the world’s largest cryptocurrency exchange by trading volume, Binance Labs, has caused speculation within the altcoin community by moving a significant amount of GMT (GMT) token reserves. The transfer of GMT reserves to Binance Deposit led to rumors about the potential sale of tokens purchased as investments, causing up to a 15% drop in the price of GMT amidst a general downward trend in the market.
Price Drops Following Binance Labs’ Transfer
Binance Labs recently transferred approximately 9.33 million GMT tokens worth $3.14 million to Binance Deposit. The transaction, reported by on-chain data provider Spot On Chain, left around 9 million GMT tokens in Binance Labs’ wallet address, raising concerns about the potential impact of Binance Labs’ investments and the intentions behind the movement of a large number of tokens.
Binance Labs’ role as a strategic investor in STEPN, a game project operating on the Solana Blockchain and managed by GMT token, makes the transfer particularly noteworthy. Given the significant role of the GMT token in the STEPN ecosystem, any change in Binance Labs’ role as an investor for the project tends to influence the price of the altcoin.
Indeed, following the transaction, the price of GMT experienced a sharp drop of about 14%, falling to $0.3198. Since then, the altcoin has somewhat recovered, trading at $0.3251, down 10.17% in the last 24 hours at the time of writing. STEPN’s management asset has a market value of $600 million.
Binance Labs Invested in STEPN in April 2022
As is known, Binance Labs announced its strategic investment in STEPN in April 2022, highlighting the innovative features of the Web3 lifestyle application poised to revolutionize fitness and promote outdoor activities.
The investment was based on a unique concept that rewarded users for every step taken, leveraging Blockchain technology and NFTs.
