Nov 29, 2018 10:40 UTC
Mar 18, 2019 at 07:01 UTC
$510 Million Worth of Binance Coins Moved for a Mere $0.03 Fee
The crypto world was finally breathing a sigh of relief on Wednesday, thanks to the Bulls finally getting better of Bear in the crypto trade market. However, one bizarre event has got everyone’s attention. Whale Alert, a twitter handle which is known for tracking the activities on the crypto wallet, reported that a total of 98,776,172 Binance Coin (BNB) were moved out to an “unknown wallet.”
The transfer took place in ERC20 tokens, which seemed quite reasonable at first, but as the updates came by, it became quite evident that something fishy is on the cards. After the multimillion-dollar transfer in ZRX, BNT and WTC got completed in a matter of one minute; the total valuation stood at $510 Million.
If you thought the multi-million worth of transfer in a matter of few seconds is astonishing, wait till you hear the transfer fee for the same. The transaction on the Ethereum blockchain cost a mere 3 cents for the company. Yes, $510 Million transfer for $0.03, now let that sink in for a while.
The said transaction has again proved the advantage of blockchain based decentralized systems over the traditional ones in the mainstream. To give you a perspective, trades of such high volume on the Bitcoin blockchain takes an approximate time of 10 to 20 minutes. Now compare it with the mainstream ones like SWIFT, they are not even in the same horizon.
Reasons| Speculations | Answers
The said transfer moved 76% of the total BNB to an unknown wallet on the Ethereum blockchain. The transferred BNB is almost all of Binanace asset’s circulating supply. The sudden transfer called for many questions from the crypto enthusiast, speculating that the move is towards Binance’s potential use of ‘New cold Wallets’
— I am Nomad (@IamNomad) November 29, 2018
Binance CEO Changpeng Zhao came to the rescue of investors, who didn’t have an idea about any outgoing Binance transfers. Zhao on twitter cleared the air of anonymity over the transaction, and the ‘unknown wallet’ in question, claiming it as a part of the company’s efforts to enhance the operational security.
Nothing to worry about. Check the tx logs, plenty of tx FROM the new address TO our old wallets. No need to spread FUD. We are constantly working on beefing up our security even more. https://t.co/UnNJ5mH54g
— CZ Binance (@cz_binance) November 29, 2018
The figures and amount of the transfer is undoubtedly a big deal, however, what people should mainly focus on, is the negligible amount charged for the ERC20 token transfer. The declining rate of the transaction fee in the crypto world must encourage and drive people in making blockchain based technology more readily available and incorporated in every walk of life.
The trade in question is not the first time Binance has got the attention for transferring vast amounts for unimaginable transfer charges. In mid-November, Binance transferred a humongous 109,000 BTC amounting to $600 Million for a transfer fee of $8.