Uniswap Foundation’s Unexpected $43 Million Token Sale: What’s Going On?
October 25 2023 - 7:00PM
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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. Featured image from Unsplash, Chart
from TradingView
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