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.
What you'll learn 👉
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.
Numerous people have stated that the Kaspa wallet ending in n4uk5a is likely owned by @Binance, and they are more than likely correct. This thread compiles all known facts about the wallet to demonstrate why we believe it belongs to Binance. pic.twitter.com/I8uhR2KS5r
— Kaspa Report (@KaspaReport) March 17, 2025
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.
Then starting on October 3, 2024, Binance began accumulating KAS through Bybit, in addition to using GateIO, allowing it to ramp up its accumulation rate. It was around this time that we first started detecting distortions in coin distribution.https://t.co/7JXSPMOkkj
— Kaspa Report (@KaspaReport) March 17, 2025
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.
In this visualization, the flow of KAS is depicted with the CEOs of the exchanges representing the wallets they control. Richard Teng, CEO of Binance, is believed to control the second-largest Kaspa wallet, and will likely soon become the largest holder of Kaspa in the world. pic.twitter.com/A6oYAioz6P
— Kaspa Report (@KaspaReport) March 17, 2025
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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