- Jump Crypto previously sold hundreds of millions of dollars of ETH.
- This coincided with ETH’s price not breaking through to the next level, with ETH ETFs debuting in the US and the asset further crashing when the Nikkei experienced a bloodbath.
Jump Crypto, trading firm Jump Trading’s crypto vertical, unstaked 17,049 ETH worth $46.44 million, moving the funds to exchange accounts. Many crypto market participants fear the firm will sell these funds, causing ETH’s price to drop again.
Jump Crypto previously sold hundreds of millions in ETH, starting July 24, a day after spot ETH ETFs launched in the US. ETH’s price failed to move upward significantly despite the ETFs launching, and it crashed a few days later. Multiple factors played into this, including the Japanese stock market falling. However, others feel Jump Crypto’s activities added further pressure to ETH’s price.
Regarding its recent developments, on-chain analytics firm Lookonchain reported that “Jump Trading started selling $ETH again just now!” It added, “They claimed 17,049 $ETH ($46.44M) from #Lido and transferred it out for sale.” The firm still has $68.58M worth of ETH staked in Lido, according to on-chain data.
As many feared for the value of their ETH holdings because continued offloading from Jump Crypto could add selling pressure on the asset, others felt it was not moving its ETH around to liquidate its holdings. One X user stated that the firm moved the assets “back to their account!”
Arkham Intelligence Data Suggests the Firm Could Be Unstaking ETH to Provide Trading Liquidity
Data from Arkham Intelligence showed the firm moving 137.33 ETH to Binance, 223,724 USDC to Bybit, 67,668 USDC to Coinbase, and 92,692 USDT to Gate.io. While sell-off fears remain, some believe this activity is consistent with trading firms providing liquidity. Yet, others think the firm could be manipulating the market, driving fear based on previous activity to reduce ETH’s price and buy it at a discount. An X user conveyed their thoughts regarding Jump Crypto’s actions, calling it “Manipulation.”
Nevertheless, whichever way its recent unstaking endeavors go, the firm’s previous sell-offs were assumed to be it liquidating its holdings since the Commodity Futures Trading Commission (CFTC) is breathing down its neck with an active investigation.
