According to recent on-chain data, the Fantom Foundation, the main driving force behind the Fantom ecosystem, transferred 7.5 million FTM tokens to Binance.
Fantom Foundation wallet transfer 7.5 million $FTM($4 million) to #Binance ~20 minutes ago.
The last transfer of the Fantom Foundation $FTM To $Binance is during the LUNA/UST crash in May 2022.https://t.co/fDLIs3mEXq pic.twitter.com/nonowpbZRP
— Lookonchain (@lookonchain) February 20, 2023
This is the platform’s first transfer of tokens to Binance since the LUNA/UST crash in May 2022, which could indicate that the platform is looking to take profits should the market reverse.
It is not uncommon for foundations to move tokens at local highs as they seek to profit on rising prices and secure profits before market reversals occur. This is similar to what happened with ETH and the Ethereum Foundation in 2021.
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Despite the recent FTM token transfer, the project has shown high price performance in the market, up over 160% since the market-wide reversal began in January, likely due to the project’s focus on capitalizing on layer 2 solutions The hype of the scheme and the overall strength of the altcoin market.
Investors should be cautious, however, as the recent transfer of FTM tokens may indicate that the platform believes the price of the cryptocurrency has reached a local high and could soon reverse. It is important to note that FTM has been bullish recently and the market may be about to correct.
It’s worth mentioning that recent token transfers don’t necessarily indicate a bearish outlook for the project, as foundations can transfer tokens for a variety of reasons. However, the timing of the transfer suggests that the platform is taking a cautious approach and may be looking to secure profits while FTM prices remain high.
At the time of writing, FTM was trading at $0.52, down 3% on the day.
Source: TradingView
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