Reports suggest that Binance Labs has sold off a significant portion of its investment in GMT by transferring over 9 million tokens, leading to a 14% decrease in the GMT price.

Binance Labs, an investment branch of Binance, recently transferred a substantial number of GMT tokens to Binance Deposit, sparking speculation about a possible sale of investment assets. Following this transfer, the price of GMT plummeted by 14% due to the current market conditions.

The transfer of 9.33 million GMT tokens, worth $3.14 million, from Binance Labs to Binance Deposit has raised concerns about the future of its investment in STEPN, a gaming platform powered by the GMT token on the Solana blockchain. This move has prompted questions about Binance Labs' motives and the potential consequences for its investments within the crypto community.

Binance Labs' decision to invest in STEPN in April 2022 was based on its innovative features as a web3 lifestyle application incentivizing fitness through blockchain technology and NFTs. The recent sell-off of GMT tokens could have a significant impact on the ecosystem and potentially lead to further price declines.

Despite the initial crash in GMT price, there has been a slight recovery following the sell-off. However, the overall trend shows a 9.45% drop in GMT price to $0.329, with trading volume increasing by 7.40% to $125.61 million. The current market cap of the STEPN governance token stands at $609.71 million.

Before the recent slump caused by Binance Labs' divestment, GMT was approaching its all-time high of $4.11. After peaking at $0.3629, the token experienced a sharp decrease, with 7-day losses exceeding 5%. Nonetheless, the monthly gains amounted to over 6% before the sell-off.