Is Kaspa’s Second Largest Wallet Owned By Binance? KAS Price Pumps

The Kaspa price had a successful week compared to other top altcoins as it pumped 20%, to over $0.075.

The price of Kaspa (KAS) has shown resilience compared to other top altcoins, with a 20% surge over the past week to over $0.075. This rise may be linked to Kaspa’s Crescendo hard fork, which we previously covered.

However, a Kaspa analyst, known as ‘Kaspa Report’ on X, has pointed out that the second-largest Kaspa wallet is likely owned by Binance. This claim has gone viral, with many discussing it online.

This hypothesis is based on several observations. Firstly, the wallet consistently receives deposits on weekdays at the same daily time, suggesting a business entity rather than an individual, aligning with the strict asset management protocols followed by cryptocurrency exchanges.

Moreover, the potential for the private modular blockchain Kaspa to be used for spamming transactions has been a subject of discussion among crypto community members.

The spam transactions began in March 2024, shortly after the price of Kaspa dropped to lows of $0.01 following its previous highs of $0.08.

The spam transactions are characterized by an excessive number of small transactions, typically less than $1 in value, accumulating in a single wallet over a short period.

The spam transactions are also being performed at a high frequency, with hundreds of transactions per day being sent to the same wallet, which is the second-largest Kaspa wallet and is currently accumulating a large amount of Kaspa at a rapid pace.

The analysis also considers the timing of transactions and the source of funds, ruling out the possibility of the wallet belonging to U.S.-based companies like Coinbase, Grayscale, or Gemini due to SEC regulations.

The analysis concludes that Binance is most likely the owner of the second-largest Kaspa wallet, and it is approaching an accumulation inflection point as it already absorbs over 70% of coinbase emissions.

The implications of Binance's actions are significant for the Kaspa ecosystem, as it may be unable to handle such a large percentage of the supply being forced back into the system at the current rate.