The Uniswap Foundation, known for its unwavering support of the UNI crypto, is now in the spotlight after the liquidation of over $43 million in UNI, the platform’s native currency. What really happened?
The Foundation liquidates $43 million in crypto
The Uniswap Foundation, a major pillar in the world of decentralized finance (DeFi), surprised the crypto community with an unexpected sale of its tokens. In the span of three days, it liquidated approximately $43.3 million worth of UNI tokens, a notable development considering how rare such moves have been in the past two years.
According to Lookonchain, 6.8 million of these tokens, or almost $29.16 million, were redirected to a new wallet. But that’s not all, part of this sale ended up on FalconX, a crypto trading platform. Three million UNI tokens, equivalent to $13 million, were sold through Kraken, in partnership with Wintermute.
What are the hidden reasons behind this approach?
While the reasons for these sales remain unclear, several theories are circulating. PeckShieldAlert, an expert in crypto market risk analysis, reported that the Uniswap Foundation shipped nearly ten million UNI tokens to four different addresses.
The origin of these tokens is equally fascinating. According to Etherscanthe foundation received 10,685,984 UNI from a wallet titled “Uniswap V2: UNI Timeblock” on October 20.
Could these financial movements be linked to future projects or partnerships in development? Or is this a strategy of the Foundation to diversify its assets or protect against possible future market volatility?
It should be noted that, despite this large-scale liquidation, the UNI token has maintained an upward trajectory. Over the last week, its value has increased by 7.5%. This dynamic is part of a broader context of a bull market for crypto, driven by the spectacular rise of Bitcoin by more than 20% in one week.
The recent actions of the Uniswap Foundation have raised many questions within the crypto ecosystem. Although some may view these transactions as an indication of uncertainty, the overall cryptocurrency market continues to show solid momentum.
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