In a recent development, Binance Labs, the independent investment arm of Binance, has stirred speculation after transferring a massive STEPN (GMT) reserve. The reserve was transferred to Binance Deposit, which spurred rumours of a possible selloff of investment tokens. Moreover, the GMT price plunged 14% after the transaction, catalyzed by the bearish market trend.

Binance Labs Shifts Major GMT Reserve

Binance Labs recently 9.33 million GMT tokens, valued at $3.14 million, to Binance Deposit. The transaction, reported by SpotOnChain, has left around 9 million GMT tokens in the Binance Labs address (0x2e…e6c2), sparking concerns of a potential selloff of investment tokens.

The significance of this transfer lies in Binance Labs’ involvement as a strategic investor in STEPN, a gaming project governed by the GMT token, which operates on the Solana blockchain. With such a substantial movement of tokens, questions arise about Binance Labs’ intentions and the potential impact on its investments.

The GMT token serves as a fundamental component within the STEPN ecosystem, making any fluctuations in its ownership noteworthy within the crypto community. Moreover, such a major dump could lead to a further crash in the GMT price, expediting the effects of the bearish market.

Earlier, in April 2022, Binance Labs announced its strategic investment in STEPN. The investment was made owing to its features as an innovative web3 lifestyle application poised to revolutionize fitness and incentivize outdoor activity like never before. Binance Labs noted that STEPN presents a unique concept where users are rewarded for every step they take. Moreover, it leverages the power of blockchain technology and non-fungible tokens (NFTs).

Also Read: Breaking: Binance Exchange Names First Board of Directors

GMT Price Crashes

The GMT price recovered slightly after crashing nearly 14% earlier. At press time, the GMT crypto price was down 9.45% to $0.329 on Tuesday, April 2. Meanwhile, the STEPN governance token boasted a market cap of $609.71 million. In contrast, GMT witnessed a 7.40% surge in trading volume to $125.61 million.

Furthermore, the 7-day losses for GMT exceed over 5% due to the recent crash. Meanwhile, the monthly gains stand at more than 6%, reflecting the initial surge in March. However, before the latest slump amid the Binance Labs divestment, GMT inched closer to its all-time high of $4.11 as it peaked at $0.3629.

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The post Binance Labs 9M GMT Transfer Raises Selloff Speculations, GMT Price Crashes 14% appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am