Uniswap Foundation’s Unexpected $43 Million Token Sale: What’s Going On?
The spotlight has recently turned towards the Uniswap Foundation following notable shifts in its holding patterns.
Uniswap Foundation, which backs the development and expansion of the Uniswap (UNI) protocol, made headlines for its sale of the platform’s native tokens. Uniswap’s UNI token has maintained its position as a prominent digital asset in decentralized finance (DeFi).
Yet, the recently reported sale by the foundation responsible for its proliferation raises questions regarding its long-term strategy and the implications for the wider UNI ecosystem.
Related Reading: Uniswap’s New Fee Structure: Are You About To Pay More For These Tokens? $43 Million Uniswap Token Sale Capture Attention Recent data suggests that the Uniswap Foundation moved roughly $43.3 million worth of UNI tokens within three days.
This activity becomes even more interesting when considering that substantial movements of UNI tokens from the foundation’s wallet have been rare over the past two years, according to data from Etherscan.
In a disclosure by the renowned on-chain analytics platform Lookonchain, the foundation reportedly transferred 6.8 million UNI tokens (valued at $29.16 million) to a new digital wallet.
A segment of these tokens also reached FalconX, a recognized digital asset trading platform.
Adding another layer to this saga, Lookonchain unveiled that three million UNI tokens, translating to $13 million, were sold via the Kraken exchange deposit address affiliated with the automated market maker Wintermute.
The timing of this sale coincided with a period of significant gains for the UNI token, according to Lookonchain.
Note that #Uniswap Foundation transferred 6.8M $UNI($29.16M) to a new address and #FalconX 30 minutes ago.
Uniswap Foundation dumped 3M $UNI ($13M) via #Kraken deposit address of #Wintermute yesterday after $UNI rose.
Watch for another sell-off!https://t.co/KFGHYCc6wu pic.twitter.com/IcBry2RlhB — Lookonchain (@lookonchain) October 25, 2023 Further Insights Into The Foundation’s Token Activities PeckShieldAlert, a renowned market risk assessment entity, also highlighted that the Uniswap Foundation had relocated nearly ten million UNI tokens to four distinct addresses.
With the cumulative value pegged at approximately $43.3 million, according to PeckShieldAlert, these revelations raise further questions about the foundation’s objectives behind these token sales.
#PeckShieldAlert #Uniswap Foundation Custody-labeled address has transferred a total of ~9.8M $UNI (worth ~$43.3M) out within the last 3 days.
~3.4M $UNI (worth ~$15M) has been sent to #FalconX, and ~3M $UNI (worth ~$13M) has been sent to #Wintermute: #Kraken Deposit pic.twitter.com/ImtI0kHXVU — PeckShieldAlert (@PeckShieldAlert) October 25, 2023 Shedding light on the inflow of tokens to the foundation’s wallet, data from Etherscan documented the receipt of 10,685,984 UNI from a wallet labeled “Uniswap V2: UNI Timeblock” on October 20.
Related Reading: Uniswap Is Decentralizing: Why Are DeFi Users Worried About This Feature? Meanwhile, regardless of the sell-off from the Uniswap Foundation, the UNI token has been in green over the past week, up by 7.5%.
This bullishness appears due to the current global crypto uptrend sentiment, especially with Bitcoin up by more than 20% in the past 7 days.
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