Chun Wang, co-founder of F2Pool, has started returning Ether and wrapped Bitcoin to Binance hot wallets after two months of moving them into private storage. Arkham's on-chain data recorded a fresh inflow on July 27, including a transaction of 3,345 ETH worth $6.5 million. In the crypto space such a maneuver usually means one thing — a major player preparing to take profits or execute large trades.
Chun Wang, co-founder of F2Pool, once the largest Bitcoin mining pool in the world, has started returning assets to Binance en masse. The switch follows two months of aggressively moving cryptocurrency the other way, into private storage.
Two months of pulling ETH and WBTC off exchanges
In May and June, Wang behaved like a classic long-term investor — he emptied his balances on centralized exchanges and moved coins to non-custodial wallets and DeFi protocols such as Spark. Over those two months he moved roughly 91,945 ETH, worth about $160 million at the time, and 973 WBTC, worth approximately $61 million, out of sight.
For the market, that was a strong bullish signal, because when the crypto market's old-timers withdraw coins from exchanges it suggests they expect prices to rise and do not plan to sell.
The July reversal started with 16,800 ETH
However, in July the strategy reversed 180 degrees. Wang stopped withdrawing funds and began returning them to Binance hot wallets in batches, starting on July 2 with a transfer of 16,800 ETH and 60 WBTC. The following day, another 9,800 ETH was sent to the exchange.
That series continued on July 27, when Arkham's on-chain data recorded a transaction of 3,345 ETH worth $6.5 million moving into the exchange.
Coins on Binance are supply ready to sell
When figures of Wang's caliber transfer tens of millions of dollars to exchanges, it always creates local pressure on prices, U.Today wrote. Coins held in personal wallets represent frozen supply, while coins held on Binance are assets ready to be sold.
Wang's reasoning has clearly changed over the past several weeks. Instead of holding assets in DeFi for the long term, he has chosen immediate liquidity on a centralized platform.
Source: U.Today
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