February 24, 2024
Here's how whales navigated dYdX's 150M token unlock

Many crypto projects have unlocked significant amounts of tokens, with dYdX, a decentralized exchange, leading the way by unlocking 150 million tokens. This represents 30% of the tokens allocated to investors, founders, and current and future employees, and the unlocking took place on December 1st.

DYDX – the native cryptocurrency of the dYdX chain – experienced a decline of only 2%.

whale in action

Following the latest token unlock, three whale accounts, which received a portion of these unlocked tokens from the dYdX Foundation wallet, have started transferring their allocated tokens for sale on Binance.

The first wallet, identified as “0xD21B”, transferred 5.63 million DYDX, valued at $17.73 million, to Binance and currently maintains a balance of 9.78 million DYDX, valued at $30.9 million.

The second wallet, “0x63C6”, transferred 793,286 DYDX, equivalent to $2.5 million, to the crypto exchange and held 1.85 million DYDX, worth $5.85 million. The third – “0xa70d” – transferred 391,036 DYDX (worth $1.23 million) to Binance and is left with 2.39 million DYDX, worth $7.54 million.

According to data Compiled by LookOnChain, these three large wallets collectively transferred 6.81 million DYDX tokens, worth $21.46 million, to Binance. Despite mild selling pressure, on-chain intelligence platforms revealed that some investors have dumped DYDX.

Traditionally, token unlocks are viewed as bearish events due to the sudden increase in token supply. Surprisingly, there has been no significant drop in the price of dYdX after this unlocking event.

This influx of DYDX tokens onto the exchange has put a bit of downward pressure on its value, causing a temporary drop to $3.08. However, the price quickly rose to $3.18 in less than 24 hours. Despite this, trading volume decreased by 5% during the same period, falling from $541k to $511k.

dYdX’s transition to standalone blockchain

The decentralized crypto derivatives exchange released the open-source code for its upcoming version 4 in October. The new dYdX chain, built on the Cosmos SDK and leveraging the Tendermint proof-of-stake consensus protocol, is expected to facilitate transactions at rates of up to 2,000 per second.

The move to integrate Cosmos into its version 4 represents the initial phase of the upgrade, marking the DEX’s shift from the Ethereum layer-2 network to its own dedicated independent blockchain.

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source: cryptopotato.com

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