STEPN faces insider trading speculations following significant GMT transfer

Web 3 digital coin GMT endures notable selling momentum after a substantial transfer of coins worth approximately $3.87 million to Binance. Spot On Chain revealed that the transaction came from a STEPN official, triggering insider knowledge assumptions.

The analytic platform revealed that address Ox8b3, possibly belonging to STEPN’s team or investor, sent 14.34 million GTMs to exchange Binance. Data shows that the highlighted wallet received 131 million GMTs since July last year from unlock events.

The address has sent GMT worth around $6.93 million (25.8 million tokens) to Binance during price declines. The wallet hosts assets worth $27.7 million (104.5 million GMT) at this writing.

Large-scale transactions & market impact

Whale transfers are crucial in the altcoin market, and selling activities from these entities negatively influence the token’s price. These moves can happen due to different reasons and have varying effects.

Sudden selling from large wallets magnifies supply, translating to bearish prices. That can welcome panic-selling from other players, leading to surged volatility and swift price fluctuations.

Further, massive token sales from the project’s officials paint a bearish picture, possibly expecting price dips in the upcoming sessions.

GMT price outlook

STEPN's coin has exhibited immense bearishness lately, even as the crypto market recorded slight recoveries. It traded at $0.2618 at this publication, following a 1.92% 24-hour dip. STEPN’s altcoin has struggled lately, losing 7% and 17% on its weekly and monthly charts, respectively.

Reduced trading volume also suggests more pain for GMT. Is the STEPN investor reducing his stash to avoid substantial losses amid anticipated price drops?