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Jump Crypto has unstaked millions of dollars of Ethereum, causing further confusion, speculation, and fear in a tumbling market.
Crypto addresses belonging to Jump Crypto saw inflows yesterday of more than $300 million according to data by Arkham Intelligence. Outflows to exchanges including Coinbase, Gate.io, and Binance, came to around $80 million over the same period.
Over 120,000 staked Ether has been liquidated since 24 July, which was the day after Ethereum ETFs launched in the US. Jump still holds $125.8 million of staked Ether, of which $116.1 million is of wrapped-Lido Staked Ether (WSTETH).
The move comes as both the crypto market faces its largest 3-day wipeout in a year, witnessing $510 billion being wiped out since 2 August.
Market participents are now linking Jump Crypto's liquidations to the wider market sell-off.
"The reason for the crazy crypto sell off seems to be Jump Trading, who are either getting margin called in the traditional markets and need liquidity over the weekend, or they are exiting the crypto business due to regulatory reasons (Terra Luna related)," Cake Group co-founder, Julian Hosp, said on X. "The sell-off is relentless atm."
The reason for the crazy crypto sell off seems to be Jump Trading, who are either getting margin called in the traditional markets and need liquidity over the weekend, or they are exiting the crypto business due to regulatory reasons (Terra Luna related). The sell-off is… pic.twitter.com/7OAhBdO8hH
— Dr. Julian Hosp (@julianhosp) August 4, 2024
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“That means they got ppl to work fuckin SHIFTS dumping their books on an illiquid weekend following the worst stock market day in years. This is a conscious decision to inflict the maximum amount of pain,” said Crypto Twitter pundit, Wazz.
Jump have been moving coins relentlessly for at least 22 hours straight
— Wazz (@WazzCrypto) August 4, 2024
That means they got ppl to work fuckin SHIFTS dumping their books on an illiquid weekend following the worst stock market day in years
This is a conscious decision to inflict the maximum amount of pain https://t.co/5sAHBiczum pic.twitter.com/j8zu4UOD7E
“Jump liquidating their crypto book into thin markets on a summer Sunday afternoon, perfectly sums up why their crypto operation is such a mess,” saod Adam Cochran, partner at venture capital firm Cinneamhain Ventures.
Jump liquidating their crypto book into thin markets on a summer Sunday afternoon, perfectly sums up why their crypto operation is such a mess.
— Adam Cochran (adamscochran.eth) (@adamscochran) August 4, 2024
For a shop that's spun out so many smart builders in this space, the operation always seems like a clusterfuck. https://t.co/jCTdtGUFYR
In June, Jump Crypto saw the abrupt departure of its president, Kanav Kariya. This news came just four days after reports emerged about the Commodity Futures Trading Commission (CFTC) investigating Jump Trading.
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