Justin Sun Moves $4.3 Million in MKR Tokens to Binance Amid MakerDAO Restructuring
Justin Sun, the founder of the Tron blockchain, has recently transferred $4.3 million worth of MKR tokens, the native token of MakerDAO, to the Binance exchange. This move comes after the restructuring process of the DeFi protocol.
According to data from Arkham, an address associated with Justin Sun sent 6,802 MKR tokens to the Binance exchange. Typically, investors send tokens to centralized exchanges with the intention of selling them. However, representatives from Justin Sun have not provided any explanation for this activity.
He got 12.41K $MKR from #Binance on Nov 19, 2022, at $682.5 ($8.47M) and cleared out 5.6K $MKR on Dec 14 at $602.9 ($3.38M).$MKR price dropped ~10.7% following his last outward transfer. Now it’s on a… pic.twitter.com/3M0HjO9ErK
— Spot On Chain (@spotonchain) May 23, 2023
The MKR trading pair in the market is considered to have low liquidity. According to data from CoinGecko, a sell order of 525 MKR in the MKR/USDT pair on Binance would immediately cause a 2% drop in the price of the coin.
MKR is the governance token of MakerDAO, one of the largest protocols in the decentralized finance (DeFi) market and the issuer of the $4.7 billion stablecoin DAI. Currently, the price of MKR is trading at around $632, according to data from CoinMarketCap.
This is not the first time Justin Sun has made significant transactions involving MKR tokens. In November 2022, he received 12,410 MKR from Binance, worth $8.47 million at the time, and subsequently sold 5,600 MKR on December 14, 2022, at a value of $3.38 million. The price of MKR dropped approximately 10.7% following his previous outward transfer, and it is now experiencing a declining trend.
The move by the Binance exchange’s CEO occurred shortly after MakerDAO announced a restructuring of its governance mechanism in the Endgame plan. Rune Christensen, the protocol’s founder, mentioned the separation of the decentralized autonomous organization (DAO) into smaller entities, managed by subDAOs with their own tokens. Additionally, this plan intends to upgrade and rename the DAI stablecoin and the MKR token, as well as invest reserves in real-world assets.
While the Endgame plan has received majority support in the voting process, it has also sparked strong reactions among community members. Many developers have resigned in recent months. In March, Paradigm Capital, one of the major investors in MakerDAO, sold over $20 million worth of MKR tokens, according to data from Arkham. These developments have raised concerns and uncertainties within the MakerDAO community.
The impact of Justin Sun’s recent transfer of MKR tokens to Binance, along with the ongoing restructuring of MakerDAO, will undoubtedly be closely monitored by market participants. As the DeFi space continues to evolve, the actions of key figures and the outcomes of governance decisions will play a significant role in shaping the future of decentralized finance.
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