Key Takeaways:
The price of the NOM token collapsed by 25 percent on April 10 after an address associated with a major whale deposited 674 million NOM, worth approximately $3.94 million, onto the Binance exchange.
"This type of large, concentrated token flow from a single entity to an exchange is a classic signal of impending sell pressure," said a researcher at on-chain intelligence firm Arkham Intelligence. "The market often reacts preemptively to such movements."
The deposit occurred at approximately 18:00 UTC, according to on-chain data. The same address had been a major accumulator of the token, having withdrawn 1.72 billion NOM—representing 59 percent of the circulating supply at the time—from Binance on April 1. The subsequent deposit of 674 million tokens back to the exchange points to a significant profit-taking maneuver.
This event highlights the risks associated with tokens that have highly concentrated ownership. The actions of a single large holder can drastically impact price and market stability, often at the expense of retail investors. The transfer is likely to trigger further sell-offs and increase downward pressure on the NOM price, severely damaging short-term confidence in the token.
The pattern of a large withdrawal followed by a significant deposit back to an exchange after a price increase is often seen as a form of market manipulation. By creating an illusion of scarcity and then capitalizing on the resulting price pump, large holders can secure substantial profits. For other market participants, such events serve as a stark reminder of the volatility and manipulation risks present in less liquid altcoin markets.
This article is for informational purposes only and does not constitute investment advice.
