In its update dated December 12, altcoin analysis platform Lookonchain drew attention to a multimillion-dollar purchase made by DWF Labs, known for affecting altcoin prices, on Binance.
Giant Investment
It was stated that DWF Labs invested millions of dollars in ID, the native token of the Binance-backed crypto project Space ID. In this purchase, which was made through two different wallets, 10 million ID tokens worth a total of $ 3.72 million were obtained.
Purchases made by DWF Labs generally cause an increase in altcoin prices. However, according to CoinGecko data, the Space ID token lost 1.5% in value in the last 24 hours due to the correction in Bitcoin. At the time of writing, ID price is trading at $0.27, 73% below its high.
Insinuation of Manipulation
DWF Labs’ past controversies regarding price manipulation have brought with it competitive market dynamics in this area. In particular, rival market maker Wintermute had implied that DWF Labs was manipulating prices.
It is necessary to make a careful analysis of how the events mentioned in the article and the investments taken may affect the altcoin market. However, considering the correction in Bitcoin and other market factors, Space ID’s loss in value may be a reflection of general market conditions.
What happens in the future?
As a result, this major investment by DWF Labs in the Space ID token can be considered as an important development that will attract the attention of players in the altcoin markets and affect future price movements. However, given the complexity and sudden changes in market conditions, it is important for investors to closely monitor such developments.