Footrace (Foot Trace) is a multi-chain wallet tracking and monitoring platform, which includes wallets of CEX, DEX, whales, smart money, and any address you want to follow. Footrace helps investors safeguard their investments and monitors unusual market and money movements. You can set up custom alerts that deliver you important money flow notifications and alerts via Email, Telegram, Discord, SMS, etc.
At Footrace, we monitor 122 exchange’s money flow activities and their balance. We include data for both decentralised and centralised exchanges. Since exchanges may add new wallet addresses, Footrace has implemented a function for users to submit any wallet addresses that Footrace is missing.
https://footrace.io/trace/alert/edit?entity_slug=binance
How to Start Monitoring?
1.Wallet Balance
Wallet Balance should be one of the first indicators people look at when monitoring an exchange. An exchange that has a high wallet balance often indicates a higher client base and reflects a high level of trust in the cryptocurrency market. Since it is basically impossible to figure out a centralised exchange’s liability to its users, there is always a risk that user’s funds are not backed 1:1 when deposited into the exchange. Therefore, having a higher balance acts as a cushion whenever there is a huge withdrawal of funds. This is particularly important during the bear market where many people FUD centralised exchange’s liquidity and lead to massive withdrawals events.
https://footrace.io/trace/portfolio/okx?tab=portfolio
An increasing wallet balance of a specific exchange indicates positive exchange trust and performance most of the time. And on the other hand, a decreasing wallet balance of a specific exchange indicates poor performance or a decreasing level of trust.
2.Exchange Inflow
Monitoring the flow of money moving in and out of crypto exchanges can provide you valuable insights. When cryptocurrencies are being transferred from a wallet storage to an exchange address, transaction costs will occur, which means there must be some motives behind these transactions since transferring funds between addresses costs money. One of the common reasons for exchange inflows is that users are looking to sell large positions of crypto assets in exchanges. Dex usually do not have as much liquidity as CEXs and when met with large orders, users can face additional trading costs due to slippage.
A sudden increase in an exchange inflow may be a bearish signal for the market as investors are moving money to exchanges to sell their crypto positions.
3.Exchange Outflow
When large amounts of cryptocurrencies are being transferred from an exchange wallet to a non custodial wallet storage, users are usually not looking to sell their assets. An overall increase in exchange outflow during a bull market may indicate strength, and that the crypto market is less likely to face selling pressures in the mid to short term. However, if the increase in exchange outflow only happens to a specific exchange platform, this might be a signal that its platform users are losing trust in the exchange and withdrawing their funds for safety.
4.Counterparites
https://footrace.io/trace/portfolio/okx?tab=counterparties
Monitoring the counterparties of exchange inflows and outflows can provide you valuable insights about smart money behaviours and help you make better investment decisions.
Footrace has a labelled wallet address of funds, whales, and smart money to help you determine what type of players are transferring in and out of exchanges. Despite increasing adoption of crypto, large institutions and whales still have the most impact on market’s liquidity and trends. So it is a good idea to follow the movements of whales and fund wallets. This is because whales and institutes tend to have more insider information, understanding their movements may help you to act before major market moves that are orchestrated by them.
For example, on December 7th, 2022, the value of CHZ dropped from around $0.1622 to nearly $0.15 within 3 hours. From looking at on-chain data, we can see that Jump Trading had transferred a lot of $CHZ to Binance exchange in the past 13 hrs, it is very likely that Jump Trading had sold these positions prior to the drop in price. This is why you may want to keep track of whale activity and act before whales execute their trades and influence crypto prices.
*Jump Trading Transactions on *Etherscan
*CHZ 1 Day Chart *Coinmarketcap
Jump Trading currently still holds around 36 million CHZ tokens, which are worth around 5.5 million dollars. If you do not want to miss Jumping trading’s next move, you can set up a custom alert at Footrace for Jump Trading and ChiliZ token.
What is Footprint Analytics
Footprint Analytics is an all-in-one analysis platform to visualize blockchain data and discover insights. It cleans and integrates on-chain data so users of any experience level can quickly start researching tokens, projects and protocols. With over a thousand dashboard templates plus a drag-and-drop interface, anyone can build their own customized charts in minutes. Uncover blockchain data and invest smarter with Footprint.
*Footprint Website: *https://www.footprint.network
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Twitter:* https://twitter.com/Footprint_DeFi*
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