**”Kaspa’s Second Biggest Address: Is Binance Holding Secret Wallet?”**

Mar 17, 2025 | Price Discussions and Predictions | 0 comments

### Kaspa’s Price Rises Amidst Speculation of Exchange Wallet Ownership

#### The Price Performance of Kaspa (KAS)

Over the past week, Kaspa (KAS), a prominent altcoin, experienced a notable price increase of over 20%, reaching above [xai model=”grok-beta” prompt=” Take Original

The Kaspa price had a successful week compared to other top altcoins as it pumped 20%, to over $0.075. Likely the reason for the pump is Kaspa’s Crescendo hard fork that we already reported about.

However, Kaspa analyst that goes by the name ‘Kaspa Report’ on X, posted a viral thread in which he tried to explain why the second largest Kaspa wallet is potentially owned by Binance. Interesting, so let’s dig in.

Evidence Suggesting Binance Ownership

In a detailed analysis, Kaspa Report compiled evidence pointing to Binance as the likely owner of Kaspa’s second-largest wallet. The investigation examined several key factors that collectively suggest a major cryptocurrency exchange, most likely Binance, controls this wallet.

The deposit timing was the first clue. The wallet shows consistent weekday deposits at the same daily time, indicating control by a business entity rather than an individual. This pattern aligns with the strict asset management protocols typically followed by cryptocurrency exchanges.

The wallet’s withdrawal capacity also points to an exchange. A private individual would likely face challenges withdrawing such large sums from multiple exchanges due to KYC/AML limitations. The unfettered flow of large cryptocurrency amounts suggests a business with established connections to exchanges. Previous analysis showed that Bybit likely consolidates its Kaspa wallets before withdrawals by this second-largest wallet, indicating coordination between the wallet owner and the exchange.

The source of funds provides another important clue. The wallet primarily received funds from GateIO. Due to SEC regulations restricting U.S. companies from transacting with GateIO, this makes it unlikely that the wallet belongs to U.S.-based companies like Coinbase, Grayscale, or Gemini.

The analysis ruled out the possibility of it being a mining wallet, as it didn’t receive KAS from the coinbase, and its accumulation rate was inconsistent with typical mining operations. The transaction timing further suggests business activity rather than mining.

Read also: How High Can Kaspa (KAS) Price Go In 2025? This $0.016 Rival Altcoin Raises $4 Million in Presale

Binance’s Accumulation Strategy

According to Kaspa Report’s analysis, Binance began accumulating Kaspa on October 23, 2023, via GateIO. Three weeks later, Binance announced it would open trading for Kaspa perpetual futures, which are denominated in stablecoins and didn’t require Binance to own any Kaspa.

This strategy of listing perpetual futures without a spot listing may have allowed Binance to suppress Kaspa’s price while accumulating more. The perpetual futures effectively trap value outside the Kaspa ecosystem, resulting in price suppression.

From October 2023 to March 2024, Binance amassed millions of Kaspa. In March 2024, it started using what would become its primary wallet, beginning with a test deposit of 6.72 KAS from GateIO on March 6, 2024. After successful testing, Binance transferred substantial amounts to this wallet.

Initially, all KAS flowed into the wallet either directly from GateIO and KuCoin or indirectly through other wallets Binance owned. On September 12, 2024, Binance sent a small test deposit of 300 KAS to its Kaspa deposit wallet on Bybit. Then from October 3, 2024, Binance began accumulating KAS through Bybit in addition to GateIO, allowing it to increase its accumulation rate.

By early 2025, the wallet had become a target for spam transactions, receiving over 200 KAS via numerous small transactions from unidentified sources. Despite efforts by Kaspa developers to curb spam transactions, those responsible for spamming Binance’s wallet are incurring non-trivial costs to carry out these actions.

Over time, Binance has dramatically increased its accumulation rate. By January 2025, it was absorbing over half of all new supply, and by March 2025, that number grew to over 70% of new supply.

Read also: Kaspa Price Warning: Breakout Incoming or More Crashes Ahead?

Approaching an Accumulation Limit

Kaspa Report believes Binance’s wallet is approaching an accumulation inflection point. After consulting with a knowledgeable Kaspa miner, they estimated that approximately 70% of mined KAS immediately enters the market and becomes available for purchase, with 30% being held by miners long-term.

Binance is currently accumulating Kaspa at a rate that already surpasses 70% of coinbase emissions. With emissions shrinking rapidly, Binance will soon need to force inactive supply back into the market to maintain its accumulation pace. While it’s possible to force a small percentage of inactive supply back through price suppression, it’s nearly impossible to force a high percentage back into circulation.

Data about inactive supply suggests that a growing cohort of people are using Kaspa as money rather than as a speculative asset. Most people who have held Kaspa for prolonged periods do not appear concerned about day-to-day fiat currency price action, meaning very little inactive supply is likely to re-enter the market.

We can see how KAS flows between different wallets. The CEOs of various exchanges are shown as the controllers of these wallets. Richard Teng, who leads Binance, appears to control the second-largest Kaspa wallet. At the current rate of accumulation, he will likely soon become the world’s largest holder of Kaspa.

Moreover, Binance risks triggering a supply shock by accumulating so much of the active supply. This could cause a short squeeze that would impair its accumulation efforts. Consequently, Binance is likely approaching the point where its rate of accumulation will start to decline due to supply constraints. If the current accumulation rate is close to this inflection point, then its present holdings are roughly halfway to the maximum feasible total: approximately 1.5 billion KAS.

Wrapping Up

Basedo on this detailed report, Binance appears to be the most likely owner of Kaspa’s second-largest wallet based on multiple lines of evidence. The consistent deposit patterns, withdrawal capabilities, and funding sources all point to a major exchange rather than an individual investor. With Binance now accumulating over 70% of new Kaspa supply, the market may soon reach a critical inflection point where further accumulation becomes increasingly difficult.

However, nothing has been officially confirmed by Binance and until then, this remains only a rumour.

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**”Kaspa’s Second Biggest Address: Is Binance Holding Secret Wallet?”**


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The post Is Kaspa’s Second Largest Wallet Owned By Binance? KAS Price Pumps appeared first on CaptainAltcoin.

and make a new unique news article, [make sure to use headers and sub headers, use html tags as well it is a wordpress post]” max_tokens=”3500″ temperature=”1.0″ top_p=”1.0″ presence_penalty=”0″ frequency_penalty=”0″].075. This surge in Kaspa’s value coincides with anticipation around the Crescendo hard fork, an upgrade that enhances the network’s capability which was previously discussed here.

#### Analyst Insights on Potential Binance Involvement

An analyst known by the pseudonym **Kaspa Report** on social media has sparked considerable interest with a claim suggesting that the second-largest wallet of Kaspa might be controlled by the cryptocurrency exchange Binance. This theory is gaining traction due to several intriguing pieces of evidence:

#### Evidence Pointing to Binance

**1. Transaction Timing:**
– The wallet in question shows a pattern of receiving deposits at fixed times during weekdays, a practice more consistent with a corporate or institutional entity.

**2. Withdrawal Capacities:**
– Large withdrawals are being made from this wallet, suggesting a capacity that goes beyond what individual investors typically manage due to stringent KYC/AML policies.

**3. Funding Sources:**
– Most funds are coming from GateIO, a platform with certain restrictions for U.S.-based entities, narrowing down the list of potential owners.

**4. Exclusion of Mining Activity:**
– The operational style and transaction timing do not mimic typical mining wallet behaviors.

Here is a tweet from Kaspa Report summarizing the findings:

#### Binance’s Strategy in Kaspa Ownership

Kaspa Report further detailed that Binance seems to have initiated its accumulation strategy as early as October 2023. This accumulation continued through strategic moves like:

– Introducing Kaspa perpetual futures without a spot market, potentially to suppress price during accumulation.
– Gradual increase in the rate of accumulation through multiple exchanges like Bybit and GateIO.

By early 2025, the wallet was targeted by spam transactions, which despite being a minor nuisance, underline the wallet’s significance in the ecosystem:

#### Approaching a Critical Point

Kaspa Report estimates that Binance’s wallet could be nearing a saturation point, where maintaining its current rate of accumulation will be unsustainable due to:

– The decreasing supply of new Kaspa coins entering circulation.
– The potential reluctance of long-term holders to sell back into the market, reducing active supply.

#### Conclusion and Caution

While these reports suggest strong evidence, Binance has yet to confirm or deny any involvement. Until official statements are made, the speculation remains just that – speculation.

Stay tuned for more updates with us on platforms like X (Twitter), CoinMarketCap, and Binance Square. Join our FREE Telegram group for real-time market insights!

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**”Kaspa’s Second Biggest Address: Is Binance Holding Secret Wallet?”**

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The post Is Binance Behind Kaspa’s Large Holdings? A Price Surge Analyzed first appeared on Lucrative Lead.

Source: captainaltcoin.com

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