254,000 NEO ($2.2M) Moved From Developer Wallet to External Address
Around 254,000 NEO coins have been unlocked and transferred from the team’s development account. The funds were sent to an unknown wallet address, presumably to be sold on secondary exchanges.
Despite having a massive war chest of funds, the NEO developer wallet unlocked some $2M worth of coins recently. The NEO was sent earlier today, setting off a Whale Alert (@whale_alert) Tweet which notified the rest of the cryptocurrency community.
254,000 #NEO (2,279,870 USD) transferred from Dev Account Unlocked to unknown wallet
— Whale Alert (@whale_alert) September 5, 2019
The overwhelming responses to the tweet seemed to be that the development team was further dumping its coins onto secondary markets. This has been uncharacteristic for NEO which is seldom mentioned by Whale Alert.
NEO boasts many different subsidiaries under its umbrella organization such as NEO Global Capital (NGC) and NEO Global Development (NGD). In June, NGD announced a $100M fund for developers in anticipation of NEO 3.0 in 2020.
Given that NEO has significant capital at its disposal, it’s admittedly a bit strange that it is unlocking more coins from its development account. However, the $2M will likely not make much of an impact on the asset’s short-term price considering its trading volume is in the hundreds of millions of dollars. However, given this new precedent, maybe we can expect more coins to be unlocked from the account in the final quarter of the year.
At the time of writing, NEO has been slipping and is currently trading at $8.91 per coin. One of the hardest hit altcoins since 2018, it has plummeted from an all-time high some 95% from $195. However, many investors are expecting NEO 3.0 to give the project a much-needed boost. Expectations are high, but NEO 3.0 is still nonetheless far off. It will likely not be released until sometime in mid-to-late 2020.
Do you think that developers are offloading more coins onto secondary markets? Is this significant enough to impact the price in the short-term? Let us know your thoughts in the comments down below.
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