News
Crypto Whales Are Selling Millions of This SEC-Targeted Token
Five cryptocurrency The whales were sold for nearly $8 million at Lido (I DO) token following an application by the Securities and Exchange Commission (SEC). These crypto whales sent 4.44 million LDO to a Binance face losses of more than $2.6 million.
In particular, a report from SpotOnChain suggests that these five whale addresses belong to three unique, highly capitalized investors. According to the report, these five whales moved almost simultaneously, with a few minutes difference.
Lido Whale Activity (LDO)
As developed, the first entity, ‘Whale 0xd7c’, deposited its remaining balance of 927,834 LDO, worth $1.68 million. 0xd7c acquired 2.428 million LDO on May 30th at a cost of $5.64 million at $2,324 per token. The whale liquidated its position over the past two days at an average price of $1,923 per token for $4.57 million and $973,000 in losses.
0xd7c5deb9fa0ac9ab71cf5f53cb380bf1e6fe9730 PnL Overview. Source: SpotOnChain
Next, the cryptographic addresses 0x287 AND 0x7Ee presumably belong to the same entity. In this regard, ‘Whale 0x287+0x287’ has deposited all its 2.26 million LDO with a nominal value of $4 million and an estimated loss of $1 million after a month of initial investment.
In particular, the wallets withdrew those LDO tokens from Binance at an average price of $2,217, for an estimated cost of $5.01 million on May 24 and June 23, 2024.
Finally, the wallets 0xBD0 AND 0x423 They liquidated all 1.25 million LDO, worth $2.23 million, within a month of acquiring these tokens.
‘Whale 0xBD0+0x423’ withdrew those LDO tokens from Binance at an average of $2,289, at an estimated cost of $2.87 million on May 24 and June 23, 2024, resulting in estimated losses of $643,000.
SEC Targets Lido for Unregistered Securities
On June 28, the U.S. SEC sued Consensys for MetaMask Ethereal (ETH) staking out service. Interestingly, the lawsuit cited Lido and Rocket Pool as illegal services.
This coercive action has brought fear, uncertainty and doubt about the Lido protocol, likely impacting these whales’ belief in the project and their investments in the LDO token.
As of this writing, LDO is trading at $1.73 and is down 24% in the last seven days. In essence, the biggest drop came after the SEC lawsuit against Consensys.
Investors should be cautious when using the Lido platform and trading LDO tokens while regulatory uncertainty looms.