VELVET: The Previous On-Chain History Matters Before the latest crash, VELVET had already shown unusual on-chain activity.
In June, a wallet linked to the VELVET creator received around 72M VELVET, worth roughly $25M at the time. Between June 6–9, around $2.5M worth of VELVET was transferred to centralized exchanges, according to Bubblemaps reports. The project did not provide a specific explanation for those transfers and described the price movement as speculative behavior. (KuCoin)Days later, VELVET experienced an approximately 80% crash.
The important point is not that these transfers prove insider selling. They don’t. The significance is the timing: a creator-linked address moved a substantial amount of tokens toward exchanges before a major collapse.After that, VELVET recovered strongly and entered another period of aggressive speculation, with low spot liquidity and high leverage contributing to extremely large price movements. (Bitcoin Foundation)Now we’re seeing another major liquidation-driven collapse.So the interesting part of VELVET isn’t just today’s dump. The historical pattern shows how quickly large wallet movements, speculative momentum, thin liquidity and leveraged derivatives can interact.
The on-chain history is worth watching closely.
In June, a wallet linked to the VELVET creator received around 72M VELVET, worth roughly $25M at the time. Between June 6–9, around $2.5M worth of VELVET was transferred to centralized exchanges, according to Bubblemaps reports. The project did not provide a specific explanation for those transfers and described the price movement as speculative behavior. (KuCoin)Days later, VELVET experienced an approximately 80% crash.
The important point is not that these transfers prove insider selling. They don’t. The significance is the timing: a creator-linked address moved a substantial amount of tokens toward exchanges before a major collapse.After that, VELVET recovered strongly and entered another period of aggressive speculation, with low spot liquidity and high leverage contributing to extremely large price movements. (Bitcoin Foundation)Now we’re seeing another major liquidation-driven collapse.So the interesting part of VELVET isn’t just today’s dump. The historical pattern shows how quickly large wallet movements, speculative momentum, thin liquidity and leveraged derivatives can interact.
The on-chain history is worth watching closely.