Binance Labs Seemingly Disposing PERP Tokens – What Will Be The Outcome?

The Binance Exchange's Venture Capital Arms, Binance Labs, could be dumping some of its PERP holdings. Recently, the venture capital moved a considerable amount of the tokens at a price lower than the purchasing value.

PERP is the native token of the Perpetual Protocol, a project of which Binance Labs is among the principal backers. Given that the VC is depositing it at a price lower than the actual value, the crypto community suspects a possible deliberate disposal, which might affect the PERP coin price.

Binance Labs Transfers Comes After Two Years of Inactivity, Raising Eyebrows

According to an analytics data provider, SpotOnChain, Binance Labs moved 750,000 PERP coins to a Binance wallet. In line with current crypto market prices, the transfer was worth about $784,000.

The venture capital completed the transaction at $1.05 per PERP token, a value lower than the purchasing price.

According to the data provider:

Notably, Binance Labs was an investor in Perpetual Protocol and had been inactive with $PERP for 2 years.

Binance Labs (@BinanceLabs) deposited 750K $PERP ($784K) to #Binance at $1.05 ~50 mins ago.

Notably, Binance Labs was an investor in Perpetual Protocol and had been inactive with $PERP for 2 years.

Currently, Binance Labs still holds 3M $PERP ($3.14M).

More details:... pic.twitter.com/KzdujPzwhr

- Spot On Chain (@spotonchain) February 6, 2024

As one of the prominent investors of Perpetual Protocol, Binance Labs got 6.25 million PERP from the protocol's wallet in March 2021. The tokens were worth $6.56 per token, amounting to over $40.98 million during the period.

Given that the seed price of the token was concealed during the time of allocations, no one can state Binance proceeds from the sale.

The only detail available from reports is that Binance Labs completed two different deposits to Binance after it got the PERP allocation.Besides the latest movement of 750,000 PERP, the venture capital transferred 3.25 million PERP coins to Binance on March 23, 2021.

It deposited the coins at $5.71 per token, totaling $81.55 million. But even with the latest deposit, Binance Labs still holds about 3 million PERP tokens worth over $3.14 million.

Massive Deposit Could Trigger Potential Price Change or Not

Based on the overall fluctuation of prices in the broader crypto market, Binance Labs' recent transaction could disfavor PERP. The considerable transaction could raise a negative sentiment on PERP's price and trigger a decline.

The venture capitalist made the deposit as PERP hovered around $1.05 per token with a market capitalization of $69.28 million.

Also, during the same period, the trade volume dropped over 13% in 24 hours. However, after the transaction, the PERP coin kickstarted an upward move a few hours later.

PERP trades at $1.08, indicating a 2.60% increase over the past 24 hours.

However, its 24-hour trading volume is still down, posting a 7.26% decline within the same time frame, bringing the value down to $4.14 million. Investors should watch PERP's price movements to determine whether the considerable transfer will pull it down.

The good news is that these types of massive deposits and transfers to exchanges have become common among some prominent companies in recent times.For instance, last week, the blockchain firm Ripple shuffled millions of XRP coins between its two affiliate accounts.

So, the deposit to Binance may not spell doom for PERP, given that it started an upward price move after the transaction.However, investors should monitor the charts closely since the market is usually unpredictable.

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