U.S.-based trading firm Jump Trading, which was heavily involved in the Terra-LUNA crisis, started transferring Lido DAO (LDO) tokens to crypto exchange Binance, causing LDO prices to drop by over 20% since Thursday.
A series of transfers have raised eyebrows about why Jump Trading started dumping Lido’s native utility token LDO suddenly and how it will impact the crypto market.
Jump Trading Transfers Massive LDO Tokens to Binance
On-chain analytics platform Lookonchain in a tweet on January 31 revealed that Jump Trading started transferring Lido DAO (LDO) tokens to crypto exchange Binance from January 26. It caused the LDO price to drop by over 20%.
Since Thursday, Jump Trading has transferred almost 350,000 LDO to Binance. The LDO price drops every time Jump Trading transfers LDO tokens to Binance.
In the last 24 hours, Lido DAO (LDO) price fell over 7% and the price currently trades 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 to drop again.
LDO is the native utility token of Lido, an Ethereum liquid staking solution. LDO is used for granting governance rights in the Lido DAO, managing fee parameters and distribution, and governing the addition and removal of Lido node operators.
Transfers Ahead Ethereum’s Shanghai Upgrade Raises Concerns
The transfers by Jump trading have raised concerns among the crypto community ahead of the Ethereum Shanghai upgrade. The upgrade will enable users to withdraw staked Ethereum from Lido liquidity pools.
Moreover, Lido whales holding 1,000,000 to 100,000,000 LDO tokens have been on a selling spree while those holding 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
The post This Crypto Token Fell 20% After Trading Firm Dumps Tokens To Binance appeared first on CoinGape.
