In a recent development, the US government transferred $1.9 million of Alameda funds to Coinbase Prime.
Render (RNDR), Uniswap (UNI), The Sandbox (SAND), Mask Network (MASK), and Axie Infinity (AXS) were moved from a wallet that Arkham identified as belonging to the US Government.
USG moves funds, and the crowd gets divided
For background, more than three years ago in 2023, the USG had seized $13 million worth of Alameda’s assets from Binance.
Additionally, Coinbase Prime worked as the institutional arm of the exchange. As anticipated, the movement of these whales sparked worries about a potential government sale.
Many in the cryptocurrency community said that this was simply a staged liquidation process or a part of custody management, with no intention of selling.
Still, a lot of people thought otherwise.
Market dynamics raises concerns
This came as RNDR was trading at $1.99 following a 9.5% decline over the previous day. Meanwhile, at the time of writing, SAND was down 4.47% at $0.06682, MASK was down 4.45% at $0.4231, and AXS was down 6.05% at $1.09 at the same time.
This might not, however, indicate selling pressure because the global crypto market cap was down 3.07% from the day before, trading at $2.46 trillion.
That said, the Crypto Fear and Greed Index, which was in the “Extreme Fear” zone at the time of publication, also reflected the bearish mood.
Selling or reshuffling
The U.S. government has traditionally held public auctions to sell confiscated Bitcoin [BTC], especially in past instances like Silk Road.
Because of that precedent, the market assumed that newly forfeited Bitcoin would likewise be liquidated, which influenced expectations.
A policy change, however, is represented by Executive Order 14233, which mandates that some Bitcoin that has been seized be kept as a strategic asset rather than being sold.
Final Summary
- The U.S government moved RNDR, UNI, SAND, MASK, and AXS tokens to Coinbase Prime.
- The overall market downturn and Executive Order 14233 suggest that the USD is not selling.