Key Takeaways:
Large transfers into centralized exchanges might be a calculated risk management step by whale investors.
Rather than immediate selling pressure, these moves could indicate a strategy to consolidate holdings during volatile times.
The concentration of tokens in fewer hands may alter future network governance and influence.
Improved tracking and clearer communication of such movements could help restore investor trust.
The Neo Foundation denied involvement in recent NEO token sales following a 35.85% drop in price between March 24 and April 1, prompting concern across the crypto community.
In a statement released after the sharp downturn, the foundation clarified that neither it nor its development arm, Neo Global Development (NGD), had sold any NEO tokens. It also ruled out any transactions by founders or core team members.
The group has since begun tracking the origins of large transactions that coincided with the decline.
Neo Foundation Investigates Mystery Wallet After NEO Transfer to Binance
Between March 24 and April 1, the price of NEO fell from roughly $8 to $5, alarming many long-time holders.
In response, the Neo Foundation and NGD launched an internal investigation to uncover the source of the volatility.
Their analysis revealed significant activity tied to a Neo Legacy address that had accumulated approximately 11.8 million NEO between 2017 and 2021.
The address reportedly moved over 11.1 million NEO to the Neo N3 blockchain in 2021.
From there, the tokens were distributed through various wallets across several years before ending up at a Binance deposit address.
Starting on March 24, 2025, around 9.25 million NEO — about 13.2% of the total circulating supply — began moving through intermediary wallets to Binance.
These transfers were estimated at approximately $60 million, based on an average price of $6.50 per token.
Although the timing matches the price decline, the foundation stated that the connection remains speculative.
“It’s important to note that the activity of this address and the price changes are merely a correlation-based speculation,” the Neo Foundation stated.
It added, “While the timing of these transfers aligns with the observed price drop, we cannot confirm a direct causal relationship at this stage.”
The wallet in question still holds 2 million NEO. The Neo Foundation is now working with blockchain analytics firms and exchanges to trace the tokens further.
“We understand the concerns this volatility and these large-scale transfers have caused within the Neo community, and we share your desire for clarity and stability,” the foundation stated.
As the Neo Foundation continues its probe, it has pledged to keep the public informed and to maintain its commitment to the long-term stability of the ecosystem.
Neo Foundation Responds as Crypto Market Volatility Intensifies
NEO’s decline unfolded during a wider crypto sell-off, where altcoins and memecoins were hit by sudden liquidations on April 1.
Act I The AI Prophecy (ACT) dropped nearly 60%, wiping out $96 million in value. Several meme tokens, such as HIPPO, BROCCOLI, and KISHU, followed suit with double-digit losses.
According to blockchain analytics platform Lookonchain, Binance’s adjustments to its leverage and margin tiers triggered a wave of liquidations that contributed to the crash.
NEO, sometimes referred to as the “Ethereum of China,” recorded a 30.8% weekly loss before recovering slightly with a 6.7% bounce.
Coingecko data shows its daily trading volume has fallen 28.4% to $131 million.
Once a dominant player in the blockchain sector, NEO’s market capitalization now sits at $390 million — a long way from its all-time high of $198.
As the Neo Foundation continues investigating large NEO transfers to Binance, market watchers are eyeing the next developments closely.
Frequently Asked Questions (FAQs)
Whales often shift tokens as a way to secure assets during turbulence. Such reallocation can be a precaution to manage risk, not necessarily a sign of forced liquidation.
When a few holders amass a larger share of tokens, it can shift voting power and decision-making influence—potentially prompting future changes in how the network is managed.
Transparency in tracking whale activities can demystify market behavior, enabling better-informed investment decisions and ultimately reinforcing trust in the ecosystem.
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