Upbit's Massive LOOM Transactions Drive Market Fluctuations
blockchain.newsRecent market activities indicate a significant movement of LOOM tokens associated with Upbit, a well-known digital asset exchange. Over the past 48 hours, Upbit has escalated the frequency of depositing LOOM to other exchanges, Binance and Bithumb, summing up to over 120 transactions. This movement, involving approximately 19 million LOOM tokens (valued around $6.76 million), coincides with a 35% dip in LOOM's price within the same timeframe, according to Scopescan.
A wallet affiliated with Upbit now reportedly holds a staggering 653 million LOOM, about 50% of the token's total supply, valued at approximately $181 million2. Additionally, on a separate occasion, Upbit withdrew 11,081,386 LOOM, valued at $2.9 million, and the exchange's total LOOM holdings now account for 49.45% of the token's circulating supply.
The high concentration of LOOM tokens by Upbit and the recent massive transfers to Binance and Bithumb could potentially be influencing LOOM's market liquidity and price stability. The substantial holding and movement of LOOM tokens hint at a possible market manipulation scenario, which might be a contributing factor to the observed price volatility. Over the last month, LOOM's price surged over 1000%, increasing its market capitalization significantly before this recent dip4.
The pattern of LOOM token movement, especially between exchanges, warrants close monitoring by both regulatory authorities and market participants. The prevailing market conditions surrounding LOOM tokens, orchestrated by hefty transactions associated with Upbit, reflect a broader narrative of market dynamics in the burgeoning cryptocurrency domain.
LOOM is the native otken of Loom Network. Loom Network, based on Ethereum,
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