US-based trading firm Jump Trading, heavily implicated in the Terra LUNA crisis, began transferring Lido DAO (LDO) tokens to crypto exchange Binance, causing LDO prices to plummet since Thursday fell over 20%.
A series of transfers has raised eyebrows as to why Jump Trading suddenly started discarding Lido’s native utility token LDO and how this will affect the crypto market.
Jump Trading transfers huge LDO tokens to Binance
On-chain analytics platform Lookonchain revealed in a Jan. 31 tweet that jump trading has started transfer Lido DAO (LDO) token to crypto exchange Binance starting Jan. 26. This caused the LDO price to fall by over 20%.
As of Thursday, Jump Trading has transferred almost 350,000 LDO to Binance. The LDO price decreases every time Jump Trading transfers LDO tokens to Binance.
In the last 24 hours, the price of Lido DAO (LDO) fell by over 7% and the price is currently trading at $2.09. The 24-hour low and high are $1.99 and $2.27, respectively.
Jump Trading still holds 3.92 million Lido DAO tokens. The next time Jump Trading transfers LDO to Binance, the price of LDO is likely drop again.
Lido DAO (LDO) token price. Source: Looconchain
LDO is the native utility token of Lido, an Ethereum liquid staking solution. LDO is used to grant governance rights in the Lido DAO, manage fee parameters and distribution, and handle the addition and removal of Lido Node Operators.
Transfers in advance Ethereum’s Shanghai upgrade is a cause for concern
Jump Trading broadcasts have raised concerns in the crypto community ahead of the Ethereum Shanghai upgrade. The upgrade will allow users to withdraw staked Ethereum from Lido liquidity pools.
Furthermore, lido whales with 1,000,000 to 100,000,000 LDO tokens have been on a selling spree, while those with 100 and 1,000,000 LDO tokens are in an accumulation phase.
also read: Elon Musk wants crypto for Twitter payments, but there’s a catch
Varinder is a technical writer and editor, technology enthusiast, and analytical thinker. Fascinated by disruptive technologies, he has shared his knowledge of blockchain, cryptocurrencies, artificial intelligence and the Internet of Things. He has long been associated with the blockchain and cryptocurrency industry and is currently reporting on the latest updates and developments in the crypto industry.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
Comments are closed.