Jump Trading’s crypto division, known as Jump Crypto, has moved hundreds of millions of dollars worth of crypto assets to various crypto exchanges in recent days. A significant portion of this includes over 120,000 staked Ethereum (ETH) tokens, worth approximately $314.8 million.
What is going on?
On July 24, Jump Crypto began moving Ethereum, just a day after launching spot Ether exchange-traded funds in the United States.
Data from blockchain analytics platform Arkham Intelligence shows that many of these assets were first unlocked (unstaked) and then sent to exchanges like Binance, OKX, Coinbase, Bybit, and Gate.io.
Crypto researcher EmberCN estimates that around $410 million worth of Ether is unstaked. Of that, $191 million has already been sent to crypto exchanges with the intention of selling. Jump Crypto still holds at least $125.8 million worth of staked Ethereum.
The company didn’t just send Ethereum to exchanges. In addition to Ethereum, Jump Crypto also moved USD Coin (USDC), Tether (USDT), Uniswap (UNI), and Shiba Inu (SHIB) tokens.
Why is Jump Crypto doing this?
There is now a lot of speculation about Jump Crypto’s intentions, and the company has faced criticism. Some criticize them for moving assets during the weekend, a period of lower liquidity. Blockchain researcher Wazz noted:
“This means they had people working in shifts to dump their positions on an illiquid weekend after the worst trading day in years. This is a deliberate decision to cause the maximum amount of pain.”
All in all, the situation at Jump Crypto seems chaotic. These events come about five weeks after Jump Crypto’s president resigned, following reports of an ongoing investigation into the company.
The reasons why Jump Crypto is selling hundreds of millions of crypto are unclear. What is certain is that it is putting significant pressure on the crypto markets. We will continue to monitor the situation.
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Source: https://newsbit.nl/jump-crypto-verkoopt-honderden-miljoenen-aan-crypto/
