Lido DAO Token Price Fell Following Rumors on Social Media

A single rumor hurt the price of Lido DAO token (LDO) on the weekend. Earlier on Friday, David Hoffman, co-founder of Bankless, released unclear information on crypto projects served with Wells Notices; later, he took back the statement. This news spread as fast as light on social platforms.

In a video stream, Hoffman said that in the past week, “many Wells notices” were given to various crypto projects. “I think Lido got one.” Within hours the video went viral on Twitter; later, Hoffman felt sorry for giving the misinformation. He corrected by saying, “That time frame is incorrectly concentrated. While there is, at least one confirmed Wells notice that *has* gone out recently.”

“I regret naming Lido specifically, since this whole thing is all ‘rumors’, and Lido doesn’t deserve to be focused on specifically here,” he tweeted. A Wells Notice is a notification issued by the Securities and Exchange Commission (SEC) to inform companies or individuals that the Us regulator plans to bring an action against them.

Update on the “Wells Notice Carpet Bombing” statements in the Weekly Rollup
I checked in with my source, and have some clarifications to make.
1. Timing and concentration
I said that “Many Wells notices have been distributed In the last week or so”.
The “week” part is… https://t.co/1TzUWYyxVd
— DavidHoffman.bedrock 🏴🦇🔊🔴_🔴 (@TrustlessState) March 3, 2023

Regardless of Hoffman’s clarification on Lido rumors, users were quick to respond to his Wells Notice remarks. In the past 24 hours, LDO price dropped 10%. At press time, LDO is trading at $2.62, down by 3.46% in the past 24 hours.

One of the crypto analysts, Andrew Thurman, tweeted that one of the crypto users sold off nearly 10% of his LDO holdings worth $2 million in tokens to Coinbase via an intermediary wallet due to the Wells Notice rumors, which were circulated around Twitter.

Amid the Wells Notice debacle (should be a Not Wells Notice amirite) Wintermute Trading shaved about 10% of their $LDO position, sending $2 milly in tokens to Coinbase through an intermediary wallet
Still hold $21 milly worth pic.twitter.com/hpiVV9qzWu
— Andrew T (@Blockanalia) March 4, 2023

In these situations, Ethereum (ETH) will probably act as the backbone of the crypto market. Of course, the effect will be shown on the market if any fluctuations happen in BTC naturally. Meanwhile, ETH’s effects will be more on the market; the upcoming platform update will affect altcoins, especially Lido DAO.

After the Merge, the next upgrade on Ethereum is “Shanghai.” For the Shanghai upgrade, Shandong will act as a testnet. This new Ethereum upgrade will help users to withdraw their staked Ether systematically and securely.

Lido is one of ETH’s biggest liquid staking solutions, allowing users to stake their Ethereum with no minimum deposits. According to CoinMarketCap (dot)com, LDO was up by 11% last week, recorded as the highest point since last summer. If the Shanghai update goes well in March 2023, Lido will return.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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Source: https://www.thecoinrepublic.com/2023/03/06/lido-dao-token-price-fell-following-rumors-on-social-media/