Countdown to Black Swan? A review of the major tokens most closely tied to Jump
What else is there besides ETH and SOL?Author: Azuma, Odaily Planet Daily
The crypto industry is once again facing a "darkest hour." From last night to this morning, the cryptocurrency market has accelerated its decline, with BTC briefly falling below $49,000, a nearly 20% drop in a single day.
Upon examining the reasons for the crash, in addition to macro influences such as recession expectations and the situation in the Middle East, Jump's potential black swan is also seen as a driving factor for the market downturn. This morning, BitMEX co-founder Arthur Hayes stated that a certain "big guy" was being liquidated and was selling all crypto assets, leading the community to speculate that this "big guy" refers to Jump.
As one of the major market makers and most active investment institutions in the industry, if Jump were to collapse, it would undoubtedly have a huge impact on the market, and projects directly invested in or working with the institution may bear the brunt.
In the following text, Odaily Planet Daily will summarize several major tokens most closely tied to Jump based on publicly available market data.
Ethereum (ETH)
ETH has always been a major holding for Jump, and during this round of decline, Jump's frantic selling has also been one of the main sources of selling pressure on ETH.
Lookonchain monitoring shows that since July 24, Jump has sold 83,000 wstETH (approximately $377 million), leaving 37,604 wstETH (approximately $104 million) still to be sold. This nearly 120,000 wstETH (approximately $481 million) was previously recovered by Jump after successfully countering the Wormhole attackers.
For more details on Jump's selling of ETH, please refer to "Jump Sells Over $100 Million in ETH in a Week: Analyzing the Amount Details and Potential Selling Pressure."
Solana (SOL)
Solana, the biggest competitor to Ethereum, is also a deeply involved project for Jump. In addition to direct holdings and market making, Jump has invested in or incubated several projects within the Solana ecosystem (such as Wormhole, Serum, Sanctum), and even directly participated in the development of the Solana network's infrastructure.
It is worth mentioning that the most important infrastructure upgrade in the Solana ecosystem in the past two years, the Firedancer client, was developed by Jump Crypto (Jump's cryptocurrency division). If Jump were to collapse, it might affect the final delivery of Firedancer.
Wormhole (W)
The current most mainstream cross-chain protocol in the Solana ecosystem, Wormhole, was originally founded by Jump Crypto but has since been spun off to operate independently.
In February 2022, Wormhole was hacked and lost 120,000 ETH, worth approximately $325 million at the time, making it one of the largest hacking incidents in the industry. When Wormhole was facing a dire situation, Jump Crypto was the first to inject 120,000 ETH into the Wormhole protocol to cover the losses, and this portion of the stolen funds was subsequently recovered in February 2023 (the aforementioned 120,000 wstETH).
Monad (Token Not Yet Issued)
The popular project Monad in the parallel EVM track also has a founding team from Jump, with its founder being Keone Hon, the former head of research at Jump.
Previously, during the token airdrop of W in Wormhole, a significant share was granted to the Monad community for free, which the market interpreted as "internal binding" among Jump's projects.
It is worth noting that Jump did not participate in Monad's two rounds of financing, so there is some room for discussion regarding the exact relationship between the two parties.
Leading Projects: APT, SUI, INJ, ALT…
In addition to the aforementioned projects, Jump has also been active on the front lines of cryptocurrency investment, participating in key financing rounds for multiple projects. Here are some mainstream tokens led by Jump:
In 2022, Aptos announced the completion of $150 million in financing, led by FTX Ventures and Jump Crypto (what a divine combination…);
In 2022, Sui completed a $300 million Series B financing led by Jump and a16z;
In 2022, Injective announced the completion of $40 million in financing, led by Jump Crypto;
In 2022, AltLayer completed $7.2 million in seed round financing, led by Polychain Capital, Jump Crypto, and Breyer Capital;
For more details on Jump's investments and market making, you can refer to the following databases (data sourced from Crypto Fundraising and CoinMarketCap).
Jump Capital investment records (70 entries);
Jump Crypto investment records (78 entries);
Jump Trading investment records (9 entries);
A partial list of Jump's holdings and market making here.
