A recent transaction from Binance, the largest crypto exchange in the world, has caught the attention of the Shiba Inu community. This transaction was reported carrying a large number of SHIB tokens, sparking speculations of why the exchange executed this transaction in the first place. However, the destination of the tokens could serve as a reason for the transaction.
Binance Moves 137 Billion Shiba Inu Tokens
On Sunday, August 11, a notable transaction was seen on the Ethereum blockchain involving the Shiba Inu token. This time around, the transaction was coming from the Binance crypto exchange, with over 137 billion SHIB tokens being moved from one of the exchange’s wallet.
At the time of the transaction, approximately 137.65 billion tokens were transferred from the Binance 14 wallet and were worth $1.924 million. The destination of this transfer was shown to be another Binance wallet, known publicly as the Binance 16 wallet.
Now, this transaction would’ve been classified as a withdrawal if the Shiba Inu tokens were moved to a wallet address not associated with the Binance exchange. However, with the coins going to the Binance 16 wallet, it suggests that this is just a reshuffling of the Shiba Inu coins held by the exchange.
Exchanges will usually reshuffle or redistribute coins across their various wallets for different reasons such as security, liquidity, etc. The even distribution ensures that there is always liquidity for its users, as well as making sure holdings are adequately protected by having them spread out across different secure wallets.
Only A Drop In The Ocean
While the 137 billion Shiba Inu tokens move from Binance is significant in isolation, it is only a small drop when it comes to the Shiba Inu holdings of the crypto exchange. According to its latest Proof-of-Reserves (PoR) report, the Binance crypto exchange currently holds 62.8 trillion tokens.
However, this number, while high, shows a decline from its previous month’s figure of 62.95 trillion Shiba Inu tokens. What this shows is that over 1 trillion SHIB tokens have been withdrawn in the one-month period, suggesting that investors are choosing to hold onto their tokens in anticipation of higher prices. If the withdrawals continue, then Binance could see its reserves drop further as investors prepare for a highly anticipated bull run.
Nevertheless, the Binance Proof of Reserves report shows that users’ Shiba Inu holdings are overcollateralized. At the current rate, the crypto exchange maintains a 102.57% collateral ratio for all the SHIB tokens held on the exchange.
Featured image created with Dall.E, chart from Tradingview.com
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