- A recent tweet by Lookonchain hinted that Jump Trading may soon dump their LDO holdings.
- According to the post, Jump Trading is starting to leave its role as a market maker for LDO.
- Despite the potential for an LDO dump in the short term, the altcoin was still able to print a 24-hour gain.
Lookonchain started off the thread by revealing that the trading firm had transferred 3 million LDO, worth approximately $6.9 million at the time of the transfer, to a new address “0x0ee7 in the last 24 hours. Thereafter, they deposited 7,366 LDO, worth $17K, to Binance.
As a result of this recent transfer, Lookonchain cautioned that the trading firm may transition from playing a market-making role for LDO towards selling a large portion of their LDO holdings. This warning comes after a series of transfers made by Jump Trading back in May of 2021 displayed a similar transaction pattern.
On 10 May 2021, Jump Trading had spent 1,207 Ethereum (ETH), worth $4.76 million, to purchase 5.59 million LDO at $0.85, according to the tweet. A year after this purchase, they then transferred 3.36 million LDO, worth $7.7 million, to Binance and KuCoin at an average price of $2.29.
Lookonchain also shared that another main wallet belonging to Jump Trading started to withdraw LDO from exchanges on 9 August 2022. The wallet had withdrawn a total of 2.44 million LDO, worth $5.9 million. In the thread, they shared their belief that this may be an early sign of an LDO selloff in the near future.
At press time, CoinMarketCap indicated that LDO was trading at $2.29 after it gained 3.65% in the previous 24 hours. This positive price movement also allowed it to outperform the two crypto market leaders Bitcoin (BTC) and Ethereum (ETH) by 2.25% and 3.10% respectively.
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