When investors send tokens to an exchange, it often suggests they plan to sell. Representatives for Sun didn’t immediately respond to a request for comment.
The spot market of MKR is thin and illiquid, meaning that a large sell order can significantly move the token price. A sell order for 525 MKR on the MKR/USDT pair on Binance, the most liquid market for the token, may cause a 2% price decline, according to Cryptowatch data.
Sun’s transfer comes as MakerDAO undergoes a major overhaul of its governance structure – a process called Endgame. The restructuring, spearheaded by protocol founder Rune Christensen, involves breaking up the decentralized autonomous organization (DAO) into smaller, self-governing entities called SubDAOs issuing their own tokens, upgrading and renaming its DAI stablecoin and MKR governance token and increasingly investing its vast reserves into real-world assets.
The Endgame plan, while approved by governance vote, also sparked backlash among the community members and investors in the protocol. A slew of delegates and developers have resigned from their roles through the past months. In March, crypto investing giant Paradigm Capital, one of the largest investors in the protocol, unloaded roughly $20 million of MKR, blockchain data by Arkham showed, with the tokens ending up on a Coinbase deposit address.
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