Binance Labs, the Venture Capital arm of Binance Exchange might be offloading PERP, the native token of the Perpetual Protocol.
Data from crypto analytics provider Spot on Chain reveals that Binance Labs deposited a total of 750,000 PERP worth approximately $784,000 hours before writing. The tokens were sent to Binance at an average price of $1.05.
Based on its mandate, Binance Labs was one of the major backers of the Perpetual Protocols when it emerged in 2020, but the Venture Capital firm has not been active in the protocol for about 2 years. This makes the deposit suspicious with a possible selloff connotation.
Binance Labs PERP Data Insight
According to the Spot On Chain data, Binance Labs got an investor allocation worth 6.25 million PERP at an average price of $6.56, amounting to $40.98 million. This allocation was sent to Binance Labs from the project’s wallet on March 16, 2021.
Binance Labs (@BinanceLabs) deposited 750K $PERP ($784K) to #Binance at $1.05 ~50 mins ago.
Notably, Binance Labs was an investor in Perpetual Protocol and had been inactive with $PERP for 2 years.
Currently, Binance Labs still holds 3M $PERP ($3.14M).
More details:… pic.twitter.com/KzdujPzwhr
— Spot On Chain (@spotonchain) February 6, 2024
Binance’s proceeds for the potential sale remain uncertain, as the seed price was not disclosed at the time. Since it got its allocation, Binance Labs has made two distinct deposits to Binance.
Besides this current 750,000 PERP deposit, it made a transfer of 3.25 million PERP to Binance at an average price of $5.71 million pegging the total at $18.55 million on March 23, 2021.
With all these deposits to Binance, the VC still holds a total of 3,000,000 PERP worth $3.14 million.
PERP Price Reacts
Complementing the bearish outlook in the market at this time, the deposit might be dampening PERP price sentiment. The token’s price and market capitalization are down by 0.19% to $1.05 and 69,286,868 while its trading volume has slumped by more than 13% to $4,472,952.
This trend is not uncommon as many crypto companies like Ripple are known to transfer coins to exchanges in major selloff moves. These actions generally spark a selloff in such tokens but such volatility tend to wear off over time.
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