Loss from withdrawing 2 billion PEPE coins from Binance
One day, someone who owned $2 billion PEPE decided to withdraw them from Binance and put them in another wallet. This move had a huge impact on the market and the price of the coin itself.
Reason for withdrawal:
This person may have many reasons for withdrawing these coins, such as wanting to secure their funds in a private wallet, or wanting to change the trading platform they use. Some people may withdraw their coins because they feel more secure when they are in direct control of their money.
Loss resulting:
BABY
0.0000238
+0.97%
1. Impact on the market:
When such a large amount of a particular coin is withdrawn, the market can be greatly affected. What happened here is that the withdrawal of 2 billion PEPE from Binance led to a decrease in liquidity on the platform, which in turn could cause a decrease in the price of the coin.
2. Impact on price:
The price of the currency may drop due to this large withdrawal, as it indicates a decline in confidence in the currency or the platform. When people see this withdrawal, they may get worried and start selling as well, and this increases pressure on the price.
3. Fees and costs:
This withdrawal is not free. There are usually withdrawal fees, which increase the costs of the transaction and lead to additional losses for the currency holder.
4. Psychological effect:
This huge drawdown has a psychological impact on other traders and investors. People start to worry and think about selling their currencies or securing their money in different ways, which increases the pressure on the market.
