On the Ethereum network, a brand-new address that was generated earlier today is onto something interesting. One of the first things the wallet address did, according to information provided by crypto analytics service company Lookonchain, was withdraw 20,000 ETH tokens worth a total of about $36.86 million from the Binance exchange.
The withdrawal has sparked a variety of theories, including whether or not the whale used the withdrawn asset to flee the current uncertainty surrounding Binance. It is unclear whether the address consolidated the funds in it after purchasing Ethereum in response to the Fear, Uncertainty, and Doubt (FUD) that permeated the industry.
With the withdrawal, concerns about a sell-off domino effect are mounting, which might lead to Ethereum’s demise.
With the United States Securities and Exchange Commission (SEC) suing the trading platform, it has been a highly difficult week for Binance exchange and the larger digital currency ecosystem. Based on the accusations, the SEC asserted that Binance was transacting unregistered securities in the form of cryptocurrency tokens while doing so in violation of American law.
The complaint presents Binance exchange with two separate options: to contest the SEC’s allegations in court or to demand a just settlement and compensation. Either choice has left Binance in a precarious situation that might lead to sell-offs and withdrawals from its platform.
Rising above charges
Two of Binance’s distinctive qualities that set it apart from competitors in the market are that it has the largest trading platform and is frequently criticised in the press and by American regulators.
The U.S. Commodity Futures Trading Commission (CFTC) accused Binance exchange in a related lawsuit a few months ago, but the company was able to recover from the FUD generated by the accusations at the time.
Although both lawsuits are still pending, experts in the field have predicted that Binance won’t be seriously harmed by them, contrary to Jim Cramer’s predictions, and will thus likely overcome these accusations in the long run.
