Binance Labs, the independent investment arm of Binance, the world's largest cryptocurrency exchange with its transaction volume, moved a large amount of GMT (GMT) token reserves, causing speculation within the altcoin's community. The move of the GMT reserve to Binance Deposit sparked rumors of a potential sale of invested tokens and led to a drop of up to 15 percent in the price of GMT amid the market-wide downward trend.
Price Dropped After Binance Labs Transfer
In a recent transaction, Binance Labs moved 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 approximately 9 million GMT tokens in Binance Labs' wallet address, raising concern about the potential impact on Binance Labs' investments and the intent behind the movement of large amounts of tokens.
The fact that Binance Labs is a strategic investor in STEPN, a gaming project managed by the GMT token and operating on the Solana Blockchain, makes the transfer particularly remarkable. Given the GMT token's important role in the STEPN ecosystem, any change in Binance Labs' role as an investor for the project is likely to impact the price of the altcoin.
As a matter of fact, after the transaction, the price of GMT was shaken by a sharp decline of approximately 14 percent and retreated to $0.3198. The altcoin, which has recovered somewhat since then, is trading at $0.3251, down 10.17 percent in the last 24 hours, at the time of writing. STEPN's management assets have a market capitalization of $600 million.
Had 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 that is ready to revolutionize the field of fitness and promote outdoor activities.
The investment was based on STEPN's unique concept of rewarding users for every step taken by leveraging Blockchain technology and NFTs.