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U.S.-based buying and selling agency Jump Trading, which was closely concerned within the Terra-LUNA disaster, began transferring Lido DAO (LDO) tokens to crypto alternate Binance, inflicting LDO costs to drop by over 20% since Thursday.
A sequence of transfers have raised eyebrows about why Jump Trading began dumping Lido’s native utility token LDO all of the sudden and the way it will impression 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 began transferring Lido DAO (LDO) tokens to crypto alternate Binance from January 26. It precipitated the LDO value to drop by over 20%.
Since Thursday, Jump Trading has transferred virtually 350,000 LDO to Binance. The LDO value drops each time Jump Trading transfers LDO tokens to Binance.
In the final 24 hours, Lido DAO (LDO) value fell over 7% and the worth at present trades at $2.09. The 24-hour high and low are $1.99 and $2.27, respectively.
Jump Trading nonetheless holds 3.92 million Lido DAO tokens. The subsequent time Jump Trading transfers LDO to Binance, the value of LDO is more likely to drop once more.
LDO is the native utility token of Lido, an Ethereum liquid staking resolution. LDO is used for granting governance rights within the Lido DAO, managing charge parameters and distribution, and governing the addition and elimination of Lido node operators.
Transfers Ahead Ethereum’s Shanghai Upgrade Raises Concerns
The transfers by Jump buying and selling have raised issues among the many crypto neighborhood forward of the Ethereum Shanghai improve. The improve will allow customers to withdraw staked Ethereum from Lido liquidity swimming pools.
Moreover, Lido whales holding 1,000,000 to 100,000,000 LDO tokens have been on a promoting spree whereas these holding 100 and 1,000,000 LDO tokens are in an accumulation section.
Also Read: Elon Musk Wants Crypto For Twitter Payments But There’s A Catch
The put up This Crypto Token Fell 20% After Trading Firm Dumps Tokens To Binance appeared first on CoinGape.
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