Wallet 0xee4, believed to belong to Chun Wang—co-founder of F2Pool and Stakefish—has sold 600,000 LDO tokens for $666,949 USDT at an average price of $1.11.
This marks Wang’s first LDO sale in 10 months.
Chun Wang (@satofishi), F2Pool co-founder and Stakefish founder, just sold 600K $LDO for $667K again after 10 months.
As an initial Lido DAO member, he received 20M $LDO on Dec 17, 2020. Currently, he holds 8M $LDO ($8.69M).
Note that he’s the fourth initial Lido DAO member to… https://t.co/vfIZEYoIhj pic.twitter.com/CR0chS6OrI
— Spot On Chain (@spotonchain) November 21, 2024
As one of Lido DAO’s initial members, Chun Wang received 20 million LDO tokens on December 17, 2020. Despite this recent transaction, he remains a significant stakeholder, holding 8 million LDO (worth approximately $8.76 million) across three separate wallets. Notably, Wang is the fourth early Lido DAO member to sell tokens in November, signaling possible concerns within the DAO community.
Lido DAO itself is grappling with a major legal challenge. Courts have ruled that a lawsuit questioning the DAO’s governance structure can proceed, with claims that Lido operates as a general partnership. This classification could expose members to liability under traditional business laws.
Lido DAO (@LidoFinance) faces a major legal setback as courts challenge its decentralized governance model. A recent ruling allows a lawsuit to proceed, arguing that Lido DAO is a general partnership, not immune to legal action. The case also questions whether $LDO tokens are… pic.twitter.com/Ue2VpOL5n3
— CryptoniteUae (@CryptoniteUae) November 20, 2024
Additionally, the case raises critical questions about whether $LDO tokens are unregistered securities, a development that could have far-reaching implications for the project and the broader DeFi ecosystem. The lawsuit reflects a growing trend in which courts are scrutinizing DAOs and treating them more like conventional business entities.
To address such challenges, legal frameworks such as Decentralized Universal Non-Agency (DUNA) are being considered as potential solutions to protect DAO members and ensure regulatory compliance.
As Lido DAO faces increased scrutiny, the actions of early contributors like Chun Wang and the evolving regulatory landscape will play a significant role in shaping its future. For now, these developments add to the uncertainty surrounding decentralized governance and tokenized ecosystems.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/chun-wang-sells-600000-ldo-amid-mounting-legal-pressure-on-lido-dao/