Arthur Hayes, the creator of cryptocurrency exchange BitMEX, recently sold off approximately 230,000 GMX tokens that he had owned since 2022. This transaction generated around $3.2 million in revenue for him, which he transferred to Wintermute Trading.
Altcoin Dropped By Its Largest Personal Holder
According to a recent disclosure from blockchain research platform Lookonchain, it appears that Arthur Hayes sold off his significant holding of GMX tokens on the previous day. As the top GMX token holder, Hayes’s transaction represents a notable move within the decentralized perpetual exchange community.
During the year 2022, the BitMEX founder purchased a sum of 3,383 Ether, equivalent to approximately $5.17 million, in order to obtain a total of 200,581 GMX tokens. In the following year, 2023, Hayes made an additional purchase of 60 Ether, which amounted to roughly $105,000, resulting in acquiring an extra 2,328 GMX tokens.
Between July and December of the year 2023, Hayes took out a total of 215,428 GMX tokens from centralized exchanges (CEX). Come the end of 2023, he purchased a sum total of 218,337 GMX tokens – obtained both from CEX and decentralized exchange (DEX) Uniswap – for an investment of $6.5 million.
Starting from April 7, 2024, according to Lookonchain’s information, Hayes owned GMX holdings valued at approximately $9.7 million. The disclosed data indicated that Hayes had withdrawn all his staked tokens amounting to 237,672 units and moved them to an account associated with Wintermute Trading, a crypto trading firm specializing in algorithmic trades.
The deal fueled whispers that the ex-CEO of BitMEX was planning a token offering. As stated in the article, during his buying period, Hayes spent approximately $29.74 per acquisition. Subsequently, his earnings from selling exceeded $3.2 million.
GMX investors responded to the latest announcement with a shrug, implying that the situation remained unaltered and the alternative coin was once more considered a good buying opportunity.
Did Arthur Hayes Accept Capitulation?
Crypto expert JJcycles expressed his analysis that the transaction appeared to be a sign of Hayes giving up, or selling out. Later, the trader pondered why GMX‘s price didn’t significantly drop after one of its major token holders disposed of his tokens.
For the analyst, the situation resembled the volatile pricing of Ethereum (ETH) during the FTX crisis. Consequently, based on this observation, the trader chose to purchase additional GMX tokens.
A major investor in GMX decides to offload his shares to a market intermediary, fueling assumptions that he’s disposing of them, indicating a likely sell position.
My question, why is price not tanking hard?
Feels a bit like the price of ETH during the FTX debacle.I’m buying more.$GMX
— JJcycles (@JJcycles) April 8, 2024
Later on, the analyst explained the context behind his earlier comment. He believed that GMX‘s price action resembled Ethereum‘s market downturn in the year 2023.
According to NewsBTC’s report, there was a rise in Ethereum sellers experiencing losses around August 2023. However, Ethereum’s price rebounded following this period of selling pressure and has been trending upwards since then.
According to the analysis provided in the charts, GMX seems to be forming a triangular pattern that is ascending as of now, similar to Ethereum’s pattern during its downturn. This observation implies that GMX might follow Ethereum’s trend and start heading upward.
GMX Price Reaction
The GMX token shows a significant decrease from its all-time high (ATH) of $91.07, currently trading at 55.5% lower. On a weekly basis, the price has dropped by 7.9%, while monthly and yearly timeframes reveal decreases of 28.9% and 48.9% respectively.
Following the announcement of Hayes’ deal, the price dipped from around $40.7 and $40.8 to reach $37.1, marking a significant decrease of approximately 9% within an hour.
Despite the initial setback, the altcoin bounced back effectively. The current price of GMX is at $40.47, representing a minimal decrease of 1% compared to 24 hours prior. Impressively, its market activity surged by an astounding 467.6%, resulting in a substantial daily trading volume of $54.77 million.
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2024-04-09 01:16