KEY TAKEAWAYS
- NEO’s price dropped by 35.85% from $8 to $5, raising community concerns and prompting an investigation.
- The Neo Foundation and Neo Global Development clarified they did not influence the market activities or sell NEO tokens during this period.
- Significant NEO transfers were traced to a Binance deposit wallet, involving approximately 9.25 million NEO, equating to about $60 million.
- The Neo Foundation is collaborating with exchanges and analytics firms to ensure transparency and trace token movements.
The NEO market has recently experienced significant volatility, with the cryptocurrency’s price declining by 35.85% from approximately $8 to $5 between March 24, 2025, and April 1, 2025. This sharp decrease has raised concerns within the community, prompting an investigation into the underlying causes of this market movement.
In a statement, the Neo Foundation (NF) and Neo Global Development (NGD) assured the community that these market activities were not initiated or influenced by them. They confirmed that neither the Neo founders nor their team sold any NEO tokens during this period. The organizations are committed to uncovering the facts and ensuring transparency.
Tracing Large-Scale NEO Transfers
Through their investigation, significant activity was identified involving a Neo Legacy address, ATF3PcPnJqDRqtsuULUdJCU3VZm1EKnj3S. Between 2017 and 2021, this address accumulated approximately 11.8 million NEO, primarily through methods resembling fund consolidation. The funds were sourced from various addresses, including a known Binance hot wallet and several others suspected to be centralized exchange hot wallets.
On September 7, 2021, this address migrated 11,145,525 NEO to Neo N3 via the official migration portal. With the Token Migration Incentive Program bonus, a total of 11,256,930 NEO was transferred to a Neo N3 wallet, Ne7QvggBUhZUzj3NXAcUrRxqAQacrs1H8J (referred to as Neo N3 Wallet 1). On September 17, 2021, Neo N3 Wallet 1 moved the entire 11,256,930 NEO to another Neo N3 address, NTFfgzRz6Z5uWR7K6cLXU8JmiXX8NvTGFW (referred to as Neo N3 Wallet 2).
Neo N3 Wallet 2 continued transferring NEO to several related wallets over the years, with most funds ultimately ending up in a Binance deposit wallet, NakBruoA4nFu4m9qoZhdm68b34Z9etpcAy. The recent wave of activity began on March 24, 2025, when Neo N3 Wallet 2 initiated a series of large-scale transfers. Over the past week, approximately 9.25 million NEO — representing about 13.2% of the total NEO in circulation — has been transferred from Neo N3 Wallet 2 through intermediary wallets to the same Binance deposit wallet mentioned above.
Community Concerns and Ongoing Investigations
These funds were subsequently moved to a Binance hot wallet, NUqLhf1p1vQyP2KJjMcEwmdEBPnbCGouVp. Based on an estimated average price of $6.50 during this period, the total value of the transferred NEO is approximately $60 million. As of now, exactly 2 million NEO remains in Neo N3 Wallet 2.
It is important to note that the activity of this address and the price changes are merely a correlation-based speculation. While the timing of these transfers aligns with the observed price drop, a direct causal relationship cannot be confirmed at this stage. All information sources come from on-chain public data, ensuring that findings are based on transparent and verifiable records.
The Neo Foundation and NGD are actively working with exchanges and blockchain analytics firms to trace the movement of these tokens and better understand the situation. Their priority is to maintain transparency and keep the community informed as more information becomes available. The organizations remain fully committed to the long-term growth and success of the Neo ecosystem.
For more details, the full statement can be found here.
Why This Matters: Impact, Industry Trends & Expert Insights
The NEO market has experienced a significant price drop of 35.85%, largely attributed to large-scale token transfers. This event has raised concerns within the community about the underlying causes and potential impacts on the NEO ecosystem.
Recent industry reports indicate the broader cryptocurrency market has faced substantial sell-offs, impacting prices across various digital assets. This aligns with the NEO price drop, highlighting the market’s vulnerability to large-scale movements and broader economic conditions.
A crypto.news analysis suggests that large-scale NEO transfers can lead to increased market volatility, affecting supply and demand dynamics and investor confidence. This supports the observed price fluctuations in response to the recent NEO transfers.
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