Polygon Co-founder Wallet Dumps $7M POL to Binance: Is a Selloff Looming?

A Polygon co-founder-associated wallet moved $7 million in POL tokens to Binance, sparking selloff concerns as exchange supply increases. POL saw a 4% intraday dip but remains strong with significant weekly and monthly gains.

Polygon Co-founder Wallet Transfers Spark Concerns

On December 6, an X post from Onchain Lens stated that a wallet associated with the creator of Polygon transferred 10 million POL, which is equivalent to $6.97 million, to Binance. It should be noted that the documented address for this wallet is 0x883….654332.

Additionally, information indicated that three weeks earlier, Polygon sent 20,000,000 of the same coin, valued at $8.09,000,000, to this wallet address. Afterwards, Binance received the entire amount from this address.

In addition, the founder's Multisign wallet sent 50,000,000 tokens (worth $35.79,000,000) to the same address two days earlier. Following that, the top cryptocurrency exchange that was previously mentioned received 10 million POL, which is equivalent to $7.17 million.

POL Price Declines Amid Exchange Supply Spike

Massive deposits to an exchange have spooked investors since they boost the token's supply on the exchange and, possibly, signal a selloff. Notably, the wallet currently has 30,000,000 tokens, valued as $20.64,000,000.

As of this writing, the price of POL has risen to $0.6820, an intraday increase of nearly 4%. It hit a low of $0.6618 and a high of $0.7188 in a 24-hour period. The aforementioned transaction increased the exchange supply, which is consistent with the coin's declining behavior.

Nonetheless, the token's weekly chart showed a rise of 17% and the monthly chart showed a gain of 56%. Following the aforementioned dump-like trades, this broader bullish movement has caused conflicting opinions.

Whale Activity Fuels Optimism Despite Selloff Risks

For the same time, CoinGape recently reported that Polygon whales purchased the coin in bulk for $0.44. According to those who follow the cryptocurrency market, this indicator suggests that prices will continue to rise until a selloff occurs.

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