The Fantom Foundation makes a major transfer to Binance, something that hasn’t happened in a long time
The Fantom Foundation Foundation which is the main driving force behind the Fantom ecosystem, has transferred 7.5 million FTM tokens to Binance, according to recent data on the channel. This is the first time since the LUNA/UST crash in May 2022 that the foundation has transferred tokens to Binance, which could be a signal that the foundation is looking to take profits before a potential market reversal.
It is not uncommon for foundations to transfer tokens to local tops as they seek to cash in on price appreciation and secure profits before a market reversal occurs. This is similar to what was seen with Ethereum and the Ethereum Foundation in 2021.
Lookonchain (@lookonchain) February 20, 2023
Despite the recent transfer of FTM tokens, the project has shown strong price performance in the market, having gained over 160% since the market reversal began in January. This can be attributed to the project’s focus on capitalizing on the hype around Layer 2 solutions and the overall strength of the altcoin market.
However, investors should be cautious as the recent transfer of FTM tokens may be a sign that the foundation believes the cryptocurrency’s price has reached a local peak and could soon see a reversal. It is important to note that FTM has been in a bullish phase recently, and the market could be due for a correction.
It is also worth mentioning that the recent token transfer does not necessarily indicate a bearish outlook for the project, as foundations may transfer tokens for various reasons. However, the timing of the transfer suggests that the foundation is taking a cautious approach and may be seeking to secure its profits while the price of FTM is still high.