Jump Trading, a market maker and trading firm, has moved 17,049 Ether worth approximately $46.44 million in preparation for an expected sell-off.
According to an X post by blockchain analyst Lookonchain, the $46.44 million Ether (ETH) claimed from the liquid staking protocol Lido has been “transferred out for sale.”
The analyst also stated that Jump Trading currently holds a remaining 21,394 ETH worth approximately $68.58 million as the new wave of ETH sales reportedly begins.
Source: Lookonchain
Related: Jump likely shuttered development arm, not trading — 1000x co-host
Withdrawal from Lido
On Aug. 14, Jump Trading’s wallet address, cited by Lookonchain, began the Lido withdrawal process of its ETH holdings at 7:47 am UTC.
Since Aug. 9 at 3:09 pm UTC, the transactions recorded on Etherscan show the wallet has been dormant and now depicts a consistent pattern of ETH being moved out in batches.
Despite the concerns of a sale raised by Lookonchain, community response and Arkham Intelligence data reveal a different story entirely.
Manipulation concerns
One X user commented that Jump Trading had transferred the ETH “back to their account,” while another raised concerns regarding manipulation and said the firm “just [wants] to buy more.”
According to Arkham data, the firm deposited 137.33 ETH worth $375,600 to Binance, 92,692 Tether (USDT) to Gate.io, 223,724 Circle USD (USDC) to Bybit, and 67,668 USDC to Coinbase.
These shifts in funds indicate preparation for liquidity provision for trading activities across the exchange and oppose the sell-off narrative suggested by Lookonchain.
Arkham Intelligence data revealing the latest Jump Trading transfers. Source: Arkham Intelligence
Jump Trading sell-off fears
On Aug. 5, a report released by QCP Group suggested that aggressive sell-offs of ETH “from Jump Trading and Paradigm VC” could trigger a market crash.
Lookonchain’s Aug. 5 X post reinforced the Singapore-based digital asset trading group report, citing Jump Trading’s sell-off of 83,000 Wrapped Lido Staked ETH (wstETH), worth $377 million.
The firm is reportedly being investigated by the United States Commodities and Futures Trading Commission (CFTC).