$14 Million Worth of dYdX Enters Major Exchanges as Whales Deposit for Possible Selloff Post-Unlock
Major dYdX token holders have started moving significant amounts of dYdX, over $13 million worth, to major exchanges after the December 1 unlock. This flood of newly unlocked tokens has sparked fears among traders of a potential mass selloff.
Large Inflows to Binance and Kraken
According to on-chain analytics provider Spot On Chain, three prominent dYdX whales deposited over 4 million dYdX tokens to Binance and Kraken exchanges in the past day. One of the entities appears to be crypto trading firm Amber Group, which moved $8 million worth of dYdX to Binance alone.
Cashing Out Post-Unlock Gains
Spot On Chain estimates Amber Group has withdrawn around $30 million worth of newly unlocked dYdX since December 1st, reaping sizeable profits from the long token lockup period ending. Meanwhile, another anonymous Kraken depositor earned an estimated $274,000 in under 48 hours. These gains may now be realized if the whales choose to sell off their positions.
VC Holdings Now Liquidated
In addition to the whale transfers, VC backer CMS Holdings has also offloaded its entire share of 516,023 dYdX tokens, worth around $1.7 million, to Binance as well. After the token unlock, the firm likely wanted to cash out any profits rather than continue holding its equity position.
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Risk of Increased Selling Pressure
With top dYdX whales moving tokens to exchanges and exiting positions, there is risk of a surge in selling pressure on dYdX’s price. Over $13 million worth of newly liquid dYdX has entered Binance and Kraken in under 12 hours, which doesn’t bode well for stability. Traders should be cautious of further declines if heavy post-unlock selling persists from formerly restricted institutional holders.
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