Jump Crypto, the cryptocurrency arm of Jump Trading, appears to be liquidating some positions by moving coins from exchange hot wallets to exchange deposit addresses, as evidenced by blockchain data, The Block reported.
Most of the cryptocurrency is staked ether that Jump began redeeming and potentially selling on July 25, days after the launch of the U.S. spot-based Ethereum ETF.
As asset prices across the cryptocurrency industry continue to slide, with Bitcoin falling below $60,000 today before recovering slightly, data shows that Jump Crypto is liquidating hundreds of millions of dollars worth of cryptocurrency.
The addresses marked by Arkham Intelligence as owned by the Jump Crypto exchange company have seen an inflow of about $300 million since yesterday (August 3), mainly from addresses marked by Arkham as exchange wallets. Similarly, the exchange's wallets have seen an outflow of about $80 million during the same period, mainly to exchanges such as Coinbase, Gate.io, and Binance, and blockchain data shows that this fund transfer is ongoing.
Most of the funds being moved are in ether. As user EmberCN points out, Jump appears to have been redeeming more than $500 million worth of Lido’s wstETH for ether since July 25, a few days after the launch of the U.S. spot-based Ethereum ETF on the 23rd. According to EmberCN, Jump currently still holds about $130 million worth of staked ether, while nearly $200 million worth of unstaked ether has entered exchanges.
Jump Crypto president Kanav Kariya left the company in June following reports that the U.S. Commodity Futures Trading Commission was investigating the firm’s cryptocurrency investment activities.
