Note: This article has been updated after new information surfaced post-publication.
Binance has been the talk of the crypto town lately. With its rival succumbing, Changpeng Zhao’s crypto platform was seen shining brighter than ever. While finding new ways to protect the industry, Binance was recording the movement of significant funds across the platform.
Earlier today, it was highlighted that a whopping 127,351 Bitcoin worth about $2.06 billion was transferred to an unknown wallet from the exchange.
This transfer was made at 10:01:35 UTC and the fee involved in the transaction was a dainty 0.00002616 BTC which is worth $0.42. It was further brought to light that the address that received the funds was a newly created wallet.
While there isn’t any clarification from Binance or CZ regarding this transfer, the crypto community began rolling out their own speculations.
Several expressed immense fear about this Bitcoin transfer as it is quite significant. A few others even suggested that CZ was moving it for his personal needs. However, many noted how it could have been an internal transfer.
Following the transfer, Binance’s cold wallet balance was at zero. Therefore, the conjecture of the latest transaction being an internal movement was strengthened.
While uncertainty loomed over the industry, CZ decided to talk about Binance’s Christmas instead.
Will this transaction tick off panic selling and push Bitcoin below $16K?
Earlier this month, the entire globe watched as Bitcoin reclaimed its two-year low. While the asset managed to veer back above the $16K level, it was seen inching close to $15K. After surging to a high of $16,594.41, BTC dipped to a low of $16,086.
At press time, the asset did not seem to be reacting to Binance’s latest transaction. Bitcoin was trading for $16,199.79 with a 0.08 percent drop over the last hour and a 2 percent daily plummet.
All these signs and no clarification from Binance suggested that this movement was mostly internal.
At press time, the CEO of Binance Changpeng Zhao took to Twitter and affirmed that the transaction was part of the Proof-of-Reserve Audit. The platform rolled out a Proof-of-Reserve system for Bitcoin just two days ago. Urging the community to ignore the FUD, he tweeted,