Hashed Moves $4.1M Worth of $SAND to Binance: Potential Sign of Selloff

A noteworthy business deal occurring on the cryptocurrency network has South Korean blockchain investment firm Hashed throwing 17.03 million $SAND tokens, worth close to $4.1 million, into the Binance exchange.

Onchain Lens, an analytics platform that works with blockchain data, made this transaction known and has consequently raised a few eyebrows. Selling that many tokens at once might not be as easy as it sounds.

Hashed, recognized for its strategic undertakings in the blockchain sector, has been holding a remarkable stash of $SAND for some years. The firm first bought a hefty sum of $SAND tokens way back in May 2019, to the tune of $2.5 million. Now, Hashed holds a sum of $SAND that is appreciably larger, putting its total at 25.55 million tokens. That recent deposit signifies a sum large enough to change hands in a noticeable way, which in turn changes the balance in the exchange. When tokens do not remain in an exchange, they do not provide liquidity for that market. The reverse is also true: whenever tokens are in an exchange, they are available to trade. So this move is meaningful in that it can be interpreted as Hashed potentially signaling to the market that it is available to trade $SAND when the Ham-Willingians on the other side of the trade might not be expecting it.

Placing hefty sums of cryptocurrency into exchange platforms is a signal to the market, at least according to my reading of it, that those tokens might be sold soon. When institutional investors and traders want to liquidate huge positions (like $SAND) or take profits, they often make large deposits into exchange platforms like Binance, and those exchanges, in turn, sell to the market. So does this mean that Hashed is about to sell off a big chunk of its $SAND position? This deposit certainly raises questions about that.

Nonetheless, it’s essential to understand that not all deposits made to exchanges translate to instant sales. Exchanges may not always be used for trading, and a transfer to an exchange may not always indicate a sudden market movement. For example, Hashed could very well be positioning itself for some future trading based on buying conditions they expect to present themselves in the near future.

This deposit’s timing is significant, given the recent price volatility and movements of $SAND. Interest is certainly rising around metaverse-related tokens, and the adoption of the Sandbox (the platform behind $SAND) is becoming more widespread. Hashed may simply be depositing more $SAND in what it perceives to be a favorable market. Alternatively, if it perceives the market for metaverse tokens to be somewhat over-inflated, it could also be a sign that Hashed is reducing its overall exposure to the $SAND market.

Since May 2019, when Hashed bought $2.5 million worth of tokens, its history with $SAND goes back several years. Even when the price of $SAND has wobbled, Hashed has maintained a sizable position in the token. Today, our total holdings of $SAND are valued at $6.15 million, which means we are still really interested in the token and are committed to the metaverse for the long haul.

Hashed has been a significant player in blockchain investment circles, having made high-profile investments in several projects that involve blockchain and cryptocurrency. Their depositing of $4.1 million worth of $SAND into Binance is part of a larger trend where big holders—also called “whales”—make moves that could affect how the market feels about crypto. With firms like Hashed and institutional investors putting money into the crypto markets, these markets’ liquidity and volatility have been increasing. Grasping the depositing and investing strategies of these whales is crucial for retail traders and investors who hope to anticipate what might happen with cryptocurrencies next.

Hashed may have had a few potential reasons to deposit a large sum of $SAND into Binance at this point in time. One is that Hashed could be seeking to liquidate its holdings as part of a profit-taking roll-out. $SAND is at an all-time high right now, too, so Hashed might be using this moment in time to realize their gains before $SAND dips again. $SAND has gained attention in recent years given the growth of the metaverse and all the partnerships involving The Sandbox (the metaverse platform built by Animoca Brands that now runs on its own blockchain). So Hashed’s using this time to cash out on their investment doesn’t seem too wild an idea to entertain.

One more reason could be that Hashed is preparing for new investments or for diversifying its portfolio. Firms like Hashed that work within the blockchain space are often engaged in a multitude of projects, and reallocating assets from one type of investment to another is a standard operating procedure for them. Hashed could be in the process of moving capital from the sale of its $SAND tokens into new or existing blockchain projects, either by making direct investments or by supporting new blockchain-based tokens.

In another case, Hashed may be making the deposit as part of a larger tactic to boost liquidity in the market. By shifting tokens to an exchange, Hashed could be allowing for increased access to $SAND for other investors or traders—a move that could assist in creating a more efficient market for the token.

The $SAND token’s reaction to this huge deposit will be under the market’s close surveillance. As metaverse projects like The Sandbox ramp up in interest, a large-scale selloff by a prominent fund like Hashed could spell trouble for the $SAND price level. Should the market have some sort of adverse reaction or selloff triggered by the deposit, it would obviously exert some pressure on the price, but how significant of an impact we are talking about really depends on what sort of liquidity and buying the deposit actually brings.

Whether Hashed is actively selling or just moving assets for strategic reasons, depositing $4.1 million worth of $SAND into Binance has definitely captured the crypto community’s attention. As always, these large investor movements are viewed as important indicators of the broader market’s sentiment and the potential price trend for the token in question. For now, all eyes are sure to be on how this development influences the future trajectory of $SAND in what is certainly a very competitive and volatile cryptocurrency marketplace.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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