World Liberty Financial, a decentralized finance (DeFi) project backed by Donald Trump, has reportedly started offloading its Ethereum (ETH) holdings at a significant loss.
The price drop of Ethereum has sparked concern, with even institutional investors beginning to show signs of abandoning the asset class.
Ethereum Whale Sells After Holding for Over 900 Days
According to blockchain analytics firm Arkham Intelligence, World Liberty Financial liquidated a significant portion of its Ethereum holdings. A wallet linked to the project sold 5,471 ETH, worth approximately $8.01 million, at a price of $1,465 per ETH, resulting in a notable loss. The project had initially purchased 67,498 ETH for $210 million, with an average purchase price of $3,259 per token. Now, with ETH trading far below that price, World Liberty Financial is sitting on an unrealized loss of approximately $125 million.
Alongside this sale, a prominent Ethereum whale has also exited their position. The whale, who held 10,000 ETH for over 900 days, sold their entire position for $15.71 million. They locked in a profit of $2.75 million, having initially purchased the 10,000 ETH for $12.95 million in 2022. Despite holding on through ETH’s rise to $4,000, the whale decided to sell at lesser gains amid the recent market downturn.
Potential for a Retail Dump as Institutions Abandon Ethereum
The liquidation of Ethereum by both World Liberty Financial and long-term holders like the whale has raised concerns that the market may face a retail sell-off. With institutional interest in Ethereum waning and prices continuing to fall, the market may experience increased volatility as retail investors potentially follow suit, dumping their positions and further driving the price down. As Ethereum struggles to find support, many investors are carefully watching the market, unsure of where the price floor may be.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/trump-backed-defi-project-sells-ethereum-at-loss-amid-eth-price-drop/