Maker (MKR) Whales Massively Move Tokens To Exchanges After 26% Price Boost
Maker (MKR) Whales Massively Move Tokens To Exchanges After 26% Price Boost
MakerDAO’s MKR token rose to near a one-year high on Friday after the introduction of a token buyback program took place. MKR briefly rallied above $1,200 early Friday, for the first time since last August, then dropped some of its gains to change hands at around $1,148. This token has gained 26.55% in the past week. A governance proposal explains that the so-called Smart Burn Engine periodically allocates excess DAI stablecoins from Maker’s extra cache to purchase MKR from the UniSwap team.
The token’s total market cap is around $1 billion, so a buyback would reduce the supply by 0.7% per month at current prices. The notable increase in value is mainly related to recent activities involving venture capital firm Andreessen Horowitz (a16z) and CMS Holdings. Andreessen Horowitz, known for his substantial investments in various technology companies, has been observed depositing Maker tokens on the cryptocurrency exchange Coinbase, presumably to sell them. The number of MKRs reported by a16z is 12,864, worth about $12.6 million. A private transfer of 6,900 Maker tokens ($8 million) was made to a new address, hinting at potential plans to deposit more funds on an exchange. Currently, a16z holds 12,396 tokens worth about $14.4 million.
