A giant cryptocurrency whale has divested altcoin project Illuvium (ILV). It was replaced by Ethereum (ETH). Here are the details…
Whale sold altcoins
In a move that sent shockwaves through the cryptocurrency market, a massive sell-off of ILV tokens triggered a significant price drop. According to data from Lookonchain, a blockchain analysis platform, Ethereum address luggis.eth sold 10,000 ILV altcoins just over an hour ago, converting them into approximately 461 ETH worth approximately $1.08 million. This sudden selling pressure caused the ILV price to drop approximately 3.5% in a short period of time.
luggis.eth sold 10,000 $ILV for 461 $ETH($1.08M) 1 hour ago, causing the price of $ILV to drop by ~3.5% in a short time.
Then luggis.eth withdrew 300 $MKR($425K) and 154,595 $SNX($620K) from #Binance.https://t.co/OTaEL2MBKj pic.twitter.com/MkIdmwzjIC
— Lookonchain (@lookonchain) December 10, 2023
Further analysis by Lookonchain revealed that luggis.eth also transferred 300 MKR tokens (worth approximately $425,000) and 154,595 SNX tokens (worth approximately $620,000) from cryptocurrency exchange Binance. The exact reason behind these transactions remains unclear, but some analysts speculate that luggis.eth may be liquidating assets in anticipation of a broader market decline.
What is the purpose of these coins?
ILV is the native token of the Illuvium decentralized finance (DeFi) protocol and allows users to earn rewards through yield farming and liquidity provision. MKR is the governance token of MakerDAO, a decentralized autonomous organization (DAO) that manages the DAI stablecoin. SNX is the native token of Synthetix, a DeFi protocol that allows users to create synthetic assets that track the price of real-world assets.
The recent sell-off by luggis.eth has raised concerns about the overall health of the DeFi market, especially in light of recent price declines in various cryptocurrencies. However, it is important to note that this is only an isolated incident and it is too early to draw firm conclusions about the future of DeFi. As the situation continues to evolve, investors are advised to exercise caution and conduct their own due diligence before making any investment decisions. It is also important to stay up to date on the latest developments in the DeFi space and be aware of the potential risks associated with this emerging technology.
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