Cryptocurrency algorithmic trading platform and market maker Jump Trading has resumed its ether (ETH) sales, selling over 17,000 ETH worth over $46.44 million on Wednesday.
A post by X from blockchain analytics firm Lookonchain revealed that Jump Trading claimed the assets from the liquid staking protocol Lido and put them up for sale in batches of 2000 ETH.
Jump Trading starts selling ETH
Lookonchain said Jump Trading had 21,394 Wrapped Staked ETH (wstETH) remaining worth around $68.58 million, suggesting the firm could execute more ETH sales in the coming days.
Jump Trading’s coin movements have raised concerns about a possible drop in quotes among market participants. The cryptocurrency trading platform had been on an ETH selling streak since July, pausing for a few days in early August before resuming yesterday.
On August 5th, Lookonchain reported that Jump Trading was selling 120,695 wstETH worth $481 million and had sold 83,000 wstETH valued at $377 million since July 24. Between July 24 and August 5, ETH lost over 33% of its value, falling from $3,400 to $2,200.
The blockchain analyst clarified at the time that the 120,695 wstETH Jump Trading sold had been recovered from attackers who exploited the Wormhole protocol, and that the company had around 37,604 wstETH worth $104 million left to sell.
ETH is going south
Shortly after the moves occurred, they had little to no impact on ETH’s price action. However, the picture later changed when the crypto asset recorded a quick drop from $2,775 to $2,645 and was floating around the level. With the trading market oblique It currently remains to be seen how well ETH will absorb potential selling in the coming days and whether more pain is around the corner.
Interestingly, Jump’s activities have also sparked talk of manipulation among market participants. Some community members believe that the fund movements could be aimed at providing liquidity on exchanges, not sales, as Lookonchain claimed.
Meanwhile, Jump Trading has been under investigation by US authorities since mid-June. Sources familiar with the matter said the Commodity Futures Trading Commission (CFTC) was investigating the market maker for its involvement in cryptocurrencies and related trading and investment activities. The investigation was not deemed evidence of wrongdoing, and the CFTC has not yet announced any charges or indictments against the firm.
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