Can One "Wallet" Cause a Change in TRX's Price?
We previously reported some strange activity on Trdot Wallet, where investors store a large amount of TRON tokens (TRX). The so-called “wallet” is apparently based in China. Its balance peaked at 1.2 billion TRX in February (around $32 million USD today) thanks to its promise of high-interest returns and rewards for enrolling new users.
After Trdot Wallet suspended the withdrawals and deposits of TRX in February, supposedly because of a mainnet upgrade, its balance remained at around 770 million TRX. From March 18, however, we noticed that Trdot Wallet started to transfer TRX from its wallet address to 10 new addresses. The TRX balance of the Trdot wallet address dropped from 685 million TRX to approximately 2 million TRX. That's a total withdrawal of around USD $18.5 million, based on the current TRX price.
The strange activity didn’t end there. On March 23, Trdot Wallet transferred 40 million TRX to Binance, in what appeared to be a cashing out. LongHash reported on this and warned investors about the risks.
After that, Trdot Wallet made further large withdrawals to Binance. You can see the details below:
On March 23, Trdot Wallet made its first large-amount withdrawal, transferring 40 million TRX to Binance. The price of TRX fell by 9%.
On March 28, a second withdrawal was made with 15 million TRX transferred to Binance. The price dropped by 2% correspondingly.
On April 3, the third major withdrawal was made. Trdot Wallet transferred 92 million TRX. Again, the price went down by 12%, a decline that exceeded that of other mainstream coins.
On April 8, Trdot Wallet transferred 10 million TRX to Binance, correlating with a TRX decrease of 4%.
Although the declines in TRX price were not necessarily caused by Trdot Wallet’s cashing out, it likely played some role.
At press time the Trdot Wallet web site, trxwallet.net, was mysteriously down. But according to TRON blockchain data, there are around 514 million TRX left in the Trdot Wallet transferring addresses. Where will these funds go?
LongHash, a blockchain data journalism platform, has has been monitoring data on Bitcoin, Ethereum, EOS, TRON and other blockchains.
LongHash is now officially launching the Trdot Wallet address monitoring system in the form of visualized data. The goal is to help investors observe the flow of the remaining TRX in the Trdot Wallet and the fluctuations in the market, thereby avoiding potential risks.
On LongHash’s Trdot Wallet address monitoring page, investors can track the changes in the Trdot Wallet address and the corresponding price of TRX in real time. Also included are details of the most recent 10 large-amount transfers. We also summarized the previous withdrawals from Trdot Wallet and their impact on the market.
Blockchain, a transparent and immutable database, provides a convenient way to identify and observe pyramid schemes. LongHash aims to use blockchain data analysis to help investors monitor suspicious activity. We will continue to introduce monitoring and analysis tools to help investors identify risks and avoid unnecessary losses.