Crypto Whale Moves $510 Million in Binance Coin (BNB) For Pennies, CZ Says Only Moving To Cold Wallets

‘Whale' Moves $510M Worth Of Binance Coin (BNB) For $0.03; CZ Says Only Moving To Cold Wallets

The crypto world is always full of unpredictability and on Wednesday night, a crypto wallet tracker by the name of ‘Whale Alert’ warned the global crypto community that a large number of multi-million dollar transactions were taking place online at a rapid pace. In this regard, Whale Alert reported that most of the tokens in question were ERC-20 based altcoins.

However, what is most intriguing about this case of is the fact that 98,776,172 Binance Coin (BNB) have been transferred form Binance’s native trading platform to an unknown wallet address. Mind you, the aforementioned token supply accounts for more than 75% of BNB’s total supply.

Another shocker is that the volume of BNB being moved adds up to a whopping USD $512 million, however, the entire transfer was facilitated for a gas fees of just $0.03 (using the Ethereum blockchain). As a result of this, the global economic sector has once again been shown the true power of cryptocurrency (especially its use as a means of processing near-instant, borderless, censorship-resistant monetary transactions).

An In-Depth Look At The Matter

While many on Twitter took to speculating as to why this massive movement of BNB took place, some asked whether this transaction was in any way associated with Binance’s potential use of “new cold wallets.”

However, as soon as the issue started to escalate, Binance CEO, Changpeng Zhao, came forth and calmed investors down by tweeting out the following message:

Nothing to worry about. Check the tx logs, plenty of tx FROM the new address TO our old wallets. No need to spread FUD. We are constantly working on beefing up our security even more. https://t.co/UnNJ5mH54g

— CZ Binance (@cz_binance) November 29, 2018

I hope I don't have to retweet this too many times… Already clearly explained how to check for a new cold wallet addresses, in detail. People just have to look at the blockchain. https://t.co/KKEIHt0Mwu

— CZ Binance (@cz_binance) November 29, 2018

Falling Transaction Fees Could Save Crypto

Despite all of the weirdness surround the aforementioned situation, one positive thing to come out of this entire scenario is that over the course of the past few months, voluminous ERC-20 transactions have been processed for literally pennies using blockchain avenues.

This is quite an achievement especially considering that most banking institutions not only charge a hefty sum of money for processing each transaction but also take 2-3 days (minimum) to complete a particular financial transfer.

Final Take

In closing out this article, it is worth remembering that earlier in November, Binance facilitated a record-breaking transaction, wherein the firm sent across a total of 109,000 BTC (valued at $600 million at the time) to another wallet address for a total fee of just $8. For Bitcoin, this monumental drop in TX rates has been attributed to an increase in ‘Segwit adoption’.