coinedition.com
The 10 million CHZ transfer to Binance last month has been identified as an investment grant from Web3 startup Chiliz. The crypto transaction involving millions of CHZ tokens had induced considerable anxiety in the crypto community since the initial transfer was from Chiliz’s multi-signature wallet.
Crypto influencer Playmaker took to X (formerly Twitter) earlier today to share an update to a previous tweet where they reported a 17 million CHZ ($1 million) outflow from Chiliz’s multi-sig last month. Of these, 10 million CHZ were sent to the world’s largest crypto exchange, Binance. The wallet is still holding the remaining 7 million CHZ.
Alexandre Dreyfus, the chief executive of Chiliz, responded to Playmaker’s tweets and clarified that the transfer was part of a grant from the crypto project. The beneficiaries of the grant are expected to sell the received CHZ in order to pay salaries and fund other operations. The influencer stated that the CHZ grants were not an appropriate move in the short term since they may lead to additional selling pressure.
According to Playmaker, the Chiliz wallet that made the initial grant currently holds $50 million, including CHZ and JUMP. The influencer added that the Web3 project may announce more grants in the future, leading to a similar outflow of tokens. However, more grants would likely induce more selling pressure due to the additional CHZ circulation.
Chiliz’s questionable transfers first came to light on August 30 when the Web3 project’s multi-sig wallet transferred 250 million CHZ worth $15 million to another address. This transfer came just two days after Chiliz transferred 25 million CHZ to Wintermute, a crypto trading firm and market maker. Wintermute had previously received 65 million CHZ from Chiliz.