Jump sold over $100 million worth of ETH in a week, analyzing the details of the amount and potential selling pressure
Not finished dropping yet? Jump Trading still holds at least $100 million, and possibly tens of billions of dollars in ETH.Author: Nan Zhi (@Assassin_Malvo), Odaily Planet Daily
Today, the cryptocurrency market has plunged into a panic spiral decline amid expectations of a global economic recession, with BTC dropping from over $60,000 to below $50,000 in just two days, and ETH falling from above $3,000 to a low of around $2,100. Despite numerous macroeconomic negative factors, the main trigger for today's crash is believed to be the massive sell-off by the well-known crypto institution Jump Trading.
Within a week, Jump Trading rapidly sold over $100 million worth of ETH. Combined with the previous investigation by the U.S. Commodity Futures Trading Commission (CFTC), the already panicked crypto market is rife with rumors that its crypto-related business may be shut down.
So how many tokens did Jump Trading sell, and how much do they still hold? Odaily will analyze this in this article.
Jump Sell-off Details
The first significant transaction related to Jump Trading occurred on July 26, when a certain address transferred 7,000 ETH to Jump Trading, valued at approximately $22.6 million. At that time, ETH had just experienced a sharp drop from 3,500 USDT to 3,100 USDT.
Two days later, Jump Trading began its first sell-off, depositing 4,737 ETH into Binance, valued at about $15.4 million.
In the following days, Jump Trading conducted a series of fund consolidation operations, including unstaking ETH from Lido and multiple transfers of ETH from other wallets, subsequently depositing these ETH into exchanges.
The largest portion of the ETH tokens held by Jump Trading consists of 120,000 wstETH, which Jump Trading has been continuously redeeming since July 25.
As of the time of writing, Jump Trading still holds about 37,000 wstETH, valued at $100 million, along with $8 million in RETH, while the redeemed portion has been fully transferred or sold.
(Odaily Note: The wstETH holding address is 0x48d62ED012E327FaaCb9c8d2A56330E215DA0575)
Remaining Holdings Situation
This morning, several on-chain analysis teams reported that 96% of the tokens in Jump Trading's holdings are stablecoins, which actually do not include the aforementioned $100 million wstETH address.
Currently, the holdings value of the Jump Trading address marked by Arkham is $590 million, of which $569 million is in stablecoins, so the apparent selling pressure is the aforementioned $100 million in ETH.
However, as an industry leader, Jump Trading's theoretical holdings should far exceed this $600 million. An investigation by Odaily found that an old address of Jump Trading held 1.64 million ETH at its peak, valued at up to $3.77 billion at a price of 2,300 USDT.
However, since Jump Trading transferred over a million ETH to Robinhood in May and June 2023, whether they were sold or moved is currently untraceable, and the potential selling pressure cannot be estimated, but it is worth noting.
(Odaily Note: Jump's old address is 0x0716a17FBAeE714f1E6aB0f9d59edbC5f09815C0)
Will Jump Exit the Crypto Space?
Why has Jump started to rapidly sell ETH? There is currently no public conclusion, but the market speculates that this move is related to the previous CFTC investigation. On June 20, according to market news, the U.S. Commodity Futures Trading Commission (CFTC) was investigating Jump Crypto, but it is unclear whether the CFTC is considering any charges against the company. Four days later, Jump Crypto President Kanav Kariya announced his resignation on the X platform.
(Odaily Note: Jump Crypto is the crypto division of Jump Trading, established in September 2021.)
During Jump's sell-off of ETH, cryptocurrency market maker Keyrock's Asia-Pacific business development director Justin d'Anethan stated: "There are rumors that due to the CFTC investigation, they (Jump Trading) may be forced to exit the crypto business."
After the crash this morning, BitMEX co-founder Arthur Hayes posted on X that he learned through traditional financial channels that a "big player" was disposed of and sold all crypto assets, adding that he was unsure of the accuracy of the information but would not disclose specific names. Based on various signs, the community speculates that this refers to Jump Crypto.
Jump's Leading Projects
If Jump Trading is indeed forced to exit the crypto space for some reason, the projects led by Jump Crypto may also be affected. We have compiled the projects led by Jump Crypto that have issued tokens over the past two years, listing the project names, token names, investment rounds, and the current circulating market values of the tokens, with earlier rounds or larger token holdings noted:
ZTX-ZTX-Seed Round-$18.5 million;
Port3-PORT3-Seed Round-$4.89 million;
Celestia-TIA-Series A-$855 million;
Sui-SUI-Series B-$1.29 billion;
Injective-INJ-Post-Listing Financing-$1.4 billion;
Aptos-APT-Series A-$214 million;
AltLayer-ALT-Seed Round-$164 million;
Push Protocol-PUSH-Series A-$3.72 million;
Thetanuts Finance-NUTS-Seed Round-$5 million.
