Recently, the 4th largest Bitcoin address has added 43k Bitcoins. The wallet now holds 116,601 Bitcoins with a total value of nearly $5 billion and hasn’t sold a single coin. The address of the wallet is “3LYJfcfHPXYJreMsASk2jkn69LWEYKzexb“, and it was first started on June 17, 2019, by Binance. Yes, it is not some secret whale who has been stacking up Bitcoins. Back in June 2019, Binance tweeted that it is the reserved address for BTC that is backing the BTCB token. After the announcement on Twitter, Binance also launched the BTCB/BTC pair for trading.
More about the wallet address
Coming to the point that not a single Bitcoin was sold from this address. This is because, over the past 2-3 years, it has only seen deposits. If you check the wallet history from the above link, then it is clear that many large deposits were made at this address. A Reddit user pointed out that this might be for Binance to safeguard their exchange. In case they see a large increase in demand suddenly from spot users, then this wallet could be the backup.
There is another theory pointed out by a user that this might be a custodial wallet for some client or just CZ stacking up coins. But I highly doubt that is the case as the wallet address does clearly say that it is the Binance-BTCB-Reserve, so there is no point speculating.
How do the pegged tokens work?
The idea of having pegged tokens is that they are backed by an asset on the exchange. In the case of BTCB, it is backed by Bitcoin. When someone buys the BTCB token, the same amount of Bitcoin is added to the reserved address, and overall the reserve supply is larger than the pegged token supply. This provides security and increases the number of tokens that are available on Binance DEX. Having a reserved address that is publicly shared also gives users the option to check it publicly anytime they want. Binance also encourages others to issue pegged tokens on the Binance smart chain.
What are your thoughts on the Bitcoin wallet that hasn’t sold a single coin? And did you have a thought that this could be an exchange? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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