A recent transaction from Binance, the world’s largest cryptocurrency exchange, has caught the attention of the Shiba Inu community. This transaction was reported with a large amount of SHIB tokens, raising speculations as to why the exchange made this transaction in the first place. However, the destination of the tokens could be a reason for the transaction.

Binance Moves 137 Billion Shiba Inu Tokens

On Sunday, August 11, a notable transaction was seen on the Ethereum blockchain involving the Shiba Inu token. This time, the transaction came from the Binance crypto exchange, with over 137 billion SHIB tokens being moved from one of the exchange’s wallets.

At the time of the transaction, approximately 137.65 billion tokens were transferred from the Binance 14 wallet and were worth $1.924 million. The destination of this transfer turned out to be another Binance wallet, publicly known as the Binance 16 wallet.

Now, this transaction would have been classified as a withdrawal if the Shiba Inu tokens had been moved to a wallet address that wasn’t tied to the Binance exchange. However, with the coins going to the Binance 16 wallet, it suggests that this is merely a reshuffling of the Shiba Inu coins held by the exchange.

Exchanges will typically reshuffle or redistribute coins across their different wallets for various reasons such as security, liquidity, etc. The even distribution ensures that there is always liquidity for the users and that the assets are sufficiently protected by spreading them across different secure wallets.

Just a drop in the ocean

While the 137 billion Shiba Inu tokens that Binance is moving is significant in itself, it’s only a small drop when it comes to the cryptocurrency exchange’s Shiba Inu holdings. According to the latest Proof-of-Reserves (PoR) report, the Binance cryptocurrency exchange currently holds 62.8 trillion tokens.

This number, while high, does however show a decrease from the previous month’s figure of 62.95 trillion Shiba Inu tokens. What this shows is that over 1 trillion SHIB tokens have been withdrawn in the span of one month, suggesting that investors are choosing to hold on to their tokens in anticipation of higher prices. If the withdrawals continue, then Binance could see its reserves decline further as investors prepare for a long-awaited bull run.

Nevertheless, the Binance Proof of Reserves report shows that users’ Shiba Inu holdings are overcollateralized. At current rates, the exchange maintains a collateral ratio of 102.57% for all SHIB tokens held on the exchange.

Main image created with Dall.E, chart from Tradingview.com