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- Jump Trading has liquidated nearly $300 million in Ethereum over the past week.
- The firm has moved significant amounts of Ethereum, USDC, and other cryptocurrencies to centralized exchanges.
Recent reports reveal that Jump Trading has sold Ethereum (ETH) in unprecedented quantities, totaling nearly $300 million over the past week. This large-scale liquidation occurred while Ethereum’s price struggled, experiencing a significant 30% decline during the same period.
According to Spot on Chain, Jump Trading transferred 17,576 ETH, worth approximately $47 million, to centralized exchanges in the last 24 hours alone. The current price of Ethereum stands at $2,340, reflecting a 19.49% drop amid a broader market sell-off.
[Update] Jump Trading moved another net amount of 17,576 $ETH ($46.78M) to CEX in the past 24 hours!
This solely came from their existing $ETH holding.
Their remaining 37.6K $wstETH ($101M) and 11.5K $STETH ($26.3M) still remain in their wallet and under the unstaking process… https://t.co/fNn4RKejgf pic.twitter.com/Koab3o8ybV
— Spot On Chain (@spotonchain) August 5, 2024
As of the latest update, Jump Trading holds wstETH with 37. 6K and stETH with 11. 5K of them were staked. According to Arkham Intelligence, the Jump Trading wallet has a total of $587 million worth of cryptocurrencies, out of which $481 million is in USDC stablecoin.
In the past ten days, Jump Trading has also seen swift liquidation of all its cryptocurrency holdings. Since July 25, the firm has redeemed 83,091 wstETH ($341 million) for 97,600 stETH and unstaked 86,059 stETH ($274 million) from Lido Finance. Also, the company has staked close to $300 million of Ethereum across the leading exchanges such as OKX, Binance, Coinbase, and Gate. io.
Market Downturn Coincides with Jump Trading’s Actions
This sell-off occurred at the same time as a general crypto market crash that started with a sell-off in the Asian markets earlier this week. The market has shown more apprehension regarding the US recession possibility if the Federal Reserve holds off on the rate cuts. The number of new Ethereum addresses has dropped to its lowest levels since early 2024, reflecting a bearish sentiment in the market.
There is speculation that Jump Trading might be preparing to sell Solana (SOL) next. It has been reported that the firm is liquidating its crypto exposure because of increased regulatory pressure on Solana. Solana has declined by 12% in the last week and is trading at $113 at the time of writing, with a market cap of $53 billion.
Analysts Track Jump Trading’s Ethereum Transfers
Crypto analyst EmberCN estimated that about $410 million in Ether had been unstaked, with $191 million already deposited into crypto exchanges. Jump Crypto retains at least $125.8 million in staked Ether, including $116.1 million in wrapped Lido Staked Ether (STETH).
In addition to Ether, Jump Crypto has transferred significant amounts of USD Coin (USDC), Tether (USDT), Uniswap (UNI), and Shiba Inu (SHIB) tokens to various crypto exchanges. These moves come amid a broader market downturn, with 15% of the total crypto market capitalization disappearing over the past week. The mass transfers have led to widespread speculation about Jump Crypto’s intentions.
Critics have expressed frustration with the apparent strategy behind these moves. Blockchain analyst “Wazz” criticized Jump Crypto for timing the transfers to maximize market disruption. “That means they got people to work shifts dumping their books on an illiquid weekend following the worst stock market day in years,” Wazz said.
Jump have been moving coins relentlessly for at least 22 hours straight
That means they got ppl to work fuckin SHIFTS dumping their books on an illiquid weekend following the worst stock market day in years
This is a conscious decision to inflict the maximum amount of pain https://t.co/5sAHBiczum pic.twitter.com/j8zu4UOD7E
— Wazz (@WazzCrypto) August 4, 2024
Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, echoed similar sentiments, noting that the situation highlights broader issues within Jump Crypto’s operations.
Jump liquidating their crypto book into thin markets on a summer Sunday afternoon, perfectly sums up why their crypto operation is such a mess.
For a shop that's spun out so many smart builders in this space, the operation always seems like a clusterfuck. https://t.co/jCTdtGUFYR
— Adam Cochran (adamscochran.eth) (@adamscochran) August 4, 2024
