The governance token $YGG launched by the game guild Yield Guild Games once soared by more than 330% in three days. The community speculated that the reason for such high volatility was related to the launch of perpetual contracts on Binance. On-chain data also found that many whales transferred millions of $YGG to the exchange at the peak.

According to data from the Binance exchange, the token of the gaming guild Yield Guild Games (YGG) soared by more than 330% in three days, attracting the attention of the community.

As can be seen from the figure below, the price of $YGG was hovering around $0.2 at 9:00 a.m. on the 4th, and began to experience a strong increase at noon on the 5th, reaching a high of $0.6622 at around 9:00 p.m. on Sunday evening (6th), setting a nearly one-year high.

Why did YGG surge?

As for why YGG can have such a large fluctuation in the short term? The community speculates that it is related to Binance’s announcement to launch YGG 1-20x U-standard perpetual contract at 11:30 on August 5, 2023 (Eastern Time).

On the other hand, the reason for the rise of YGG may also be related to the short squeeze of investors. According to Coinglass data, in the past 24 hours, the liquidation amount of YGG liquidation reached 4.04 million US dollars, ranking first, higher than BTC.

Are whales transferring large amounts of YGG to Binance Exchange for dumping?

It is also worth noting that according to the data shared by X (Twitter) account Ember at about ten o'clock last night, Web3 venture capital and market maker DWF Labs transferred 3,649,995 YGG (about 2.23 million US dollars) to Binance, which was close to the time when YGG reached a high of 0.6622 US dollars, making people suspect that the company may have already taken profits at the high point.

It is understood that DWF Labs obtained 8 million YGG from YGG on 2023/2/10, and transferred all of them to Binance in three installments in recent months: • 2023/2/14, 700,000 transferred to Binance 2023/6/19, 3.649 million transferred to Binance 2023/8/6, 3.649 million transferred to Binance

In addition, according to lookonchain data, BITKRAFT Ventures has also recently deposited 1.57 million YGG (about 907,000 US dollars) into Binance through Wintermute Trading and FalconX; the whale with the address starting with 0x639B also deposited 2 million YGG (about 1.16 million US dollars) into Binance, and currently still holds 2 million YGG (about 1.16 million US dollars).

At present, we cannot determine the exact intention of these whales to transfer large amounts of YGG to exchanges, but Dynamic Zone reminds you that YGG is currently volatile, so please be careful to control risks before investing.