Major cryptocurrency investors dump millions of the token under SEC scrutiny

In a recent turn of events, five prominent cryptocurrency investors, colloquially known as ‘whales’, have offloaded a substantial amount of Lido (LDO) tokens, totaling nearly $8 million. This significant transaction comes in the wake of an enforcement action by the Securities and Exchange Commission (SEC). These investors transferred approximately 4.44 million LDO tokens to a Binance address, incurring losses exceeding $2.6 million.

A detailed analysis by SpotOnChain indicates that these five whale addresses are associated with three distinct, well-capitalized investors. The report highlights a synchronized movement of funds by these whales, with transactions occurring within minutes of each other.

**Activity of Lido (LDO) Whales:**
The first investor, known as ‘Whale 0xd7c’, moved their entire balance of 927,834 LDO, valued at $1.68 million. This investor initially purchased 2.428 million LDO on May 30, spending $5.64 million at a rate of $2.324 per token. Over the past two days, they sold their holdings at an average price of $1.923 per token, realizing $4.57 million and facing losses of $973,000.

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An overview of ‘Whale 0xd7c’s’ profit and loss, as reported by SpotOnChain.

Subsequently, the addresses 0x287 and 0x7Ee, which are believed to be controlled by the same investor, consolidated their entire 2.26 million LDO holdings, nominally valued at $4 million. This move resulted in an estimated loss of $1 million, just one month after the initial acquisition. Records show that these wallets withdrew the LDO tokens from Binance at an average price of $2.217, with a total investment of $5.01 million on May 24 and June 23, 2024.


Profit and loss overview for ‘Whale 0x287+0x287’, sourced from SpotOnChain.

Lastly, the combined wallets 0xBD0 and 0x423 liquidated their entire 1.25 million LDO holdings, worth $2.23 million, a month after purchase. These wallets retrieved the LDO tokens from Binance at an average price of $2.289, costing an estimated $2.87 million on May 24 and June 23, 2024. This resulted in estimated losses of $643,000.

**SEC Scrutiny on Lido:**
On June 28, the SEC initiated legal proceedings against Consensys concerning the MetaMask Ethereum (ETH) staking service. Notably, the lawsuit identified Lido and Rocket Pool as unauthorized services. This regulatory action has instilled a sense of fear, uncertainty, and doubt within the Lido ecosystem, potentially undermining the confidence of investors in the LDO token.

At the time of reporting, LDO is trading at $1.73, marking a 24% decrease over the past week. The significant downturn in value coincides with the SEC’s lawsuit against Consensys.


A 7-day price chart for Lido (LDO), courtesy of SpotOnChain.

Investors are advised to exercise caution when engaging with the Lido platform and trading LDO tokens amidst the prevailing regulatory uncertainties.

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