Jump Crypto Continues to Unstake and Sell ETH, Market Maker Accused of Manipulating Prices
- WBOYOriginal
- 2024-08-11 00:21:101028browse
Jump Trading's crypto vertical Jump Crypto unstaked and sold another 11,501 ETH worth $29 million, leaving it with another $63 million to sell.
Crypto market maker Jump Trading’s crypto vertical, Jump Crypto, has unstaked and sold another 11,501 ETH, which is currently valued at $29 million, leaving it with another $63 million to sell. Of the $63 million, it has already unstaked $48 million of ETH in preparation for the sale.
The market maker was heavily criticized for unstaking and transferring its ETH to exchanges last weekend as crypto prices fell sharply due to macroeconomic factors. Such large sales by those with significant holdings put immense selling pressure on crypto assets like ETH, forcing holders across the market to sell their assets. This further drove down the asset’s price, which happened to ETH as its value dropped over 20% by early Monday morning.
After ETFs of the coin went live in late July, crypto analysts expected ETH’s price to rise. However, the asset’s price failed to take off, which many believe was due to Jump Trading continuously offloading its ETH reserves, starting a day after the ETFs began trading on US exchanges. It now seems that ETH may still face some pressure as the market maker continues to sell its ETH.
Blockchain analytics firm Lookonchain posted about Jump Trading’s activity again, writing, “Jump Trading started selling $ETH again!” It added, “Jump Trading currently has 21,394 $wstETH ($63.6M) left.” The wstETH tokens represent Jump Trading’s staked ETH in Lido Finance’s liquidity staking protocol.
Earlier this week, QCP Capital noted in a report that Jump Trading’s selling activity, along with that of other market makers, had a greater impact on the overall crypto market cap tanking than expected. “The immediate trigger in crypto seems to have been aggressive ETH selling from Jump Trading and Paradigm VC. The move was likely exacerbated by market makers scrambling to cut short gamma as front-end ETH volumes spiked more than 30% to 120%!”
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