Dogecoin Whales Move Over $410 Million During Crypto Market Rout

Since monitoring agencies discovered more than $400,000 million worth of Dogecoin ($DOGE) transferred on-chain during an ongoing crypto market dip, it is clear that whales have been transferring significant sums of the meme-inspired cryptocurrency.

Dogecoin whales have reportedly shifted $410 million in the meme-inspired cryptocurrency across several transactions, with seemingly no transaction going to a wallet linked to a cryptocurrency exchange, according to data from whale monitoring firm Whale Alert, first seen by Daily Hodl.

It is unclear whether the whales are seeking to sell their Dogecoin holdings or whether they are relocating them for some other purpose because no money moved to cryptocurrency trading platforms. The price of Bitcoin, the leading cryptocurrency, dropped from approximately $20,000 to $16,000 at the time of writing due to a larger cryptocurrency market collapse.

Cryptocurrency prices have been falling since crypto exchange Binance announced it was selling the FTT holdings that it had after leaving an equity investment in the exchange. A leaked balance sheet of Alameda Research revealed the firm’s collateral heavily relied on FTX’s FTT and Solana-based altcoins with low liquidity.

In spite of its CEO Sam Bankman-Fried repeatedly claiming it had users’ funds, the trading platform had a bank run after Binance’s announcement and the balance sheet leak. This indicated it was unable to cover users’ withdrawals.

According to CrypotCompare’s investigation into FTX’s bankruptcy, the exchange had outflows of 19,947 BTC, totaling more than $340 million, on November 7. This was the highest amount since the exchange experienced withdrawals of more than 45,000 BTC on September 10, 2021.

BlockFi, a cryptocurrency lender, has banned withdrawals as a result of the FTX crisis and will no longer be “able to do business as usual” in light of the bank run on FTX and the ambiguity surrounding the cryptocurrency exchange.

Tesla accepts payments in Dogecoin

Following the completion of Elon Musk’s acquisition of Twitter, the CEO of Tesla and Space X, the price of the cryptocurrency with meme-inspired design recently increased. Musk is a well-known proponent of $DOGE and has suggested using the cryptocurrency inspired by memes on the platform for some of its functions.

Notably, top cryptocurrency exchange Binance, which contributed $500 million to support Musk’s takeover, recently introduced the “Bluebird Index,” a cryptocurrency index that monitors the performance of its own native token, $BNB, as well as that of Dogecoin ($DOGE) and a lesser-known coin called Mask Network ($MARK). Social media users speculated that Binance is teasing the coins that will be a part of a future Twitter integration into Web3 based on the name and components of the index.

Binance’s CEO explained that the company is a “minority investor” that wants to be “as supportive as possible” with Twitter at a press conference at the 2022 Web Summit in Lisbon. CZ said that Musk mentioned using Dogecoin throughout their conversations.

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