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Home Altcoins

Uniswap crashes 17% as these whales cash out fearing SEC warnings

April 11, 2024
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Uniswap crashes 17% as these whales cash out fearing SEC warnings
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  • UNI’s price declined significantly due to SEC’s actions.
  • Whales sold their holdings, while long positions got liquidated.

Shockwaves were sent across the crypto sector as Uniswap [UNI] became the target for U.S regulatory bodies. Federal regulators formally notified Uniswap of a potential lawsuit with a Wells Notice on 10th April.

UNI holders take a hit

After this news broke, the price of the UNI token plummeted. In the past 24 hours, the price of UNI fell by 16.32%. Following actions by the SEC, numerous large holders initiated the sale of their UNI tokens.

According to data from lookonchain, three major holders offloaded a total of 2.03 million UNI tokens valued at $20 million, precipitating a 17% decline in the price of UNI.

Additionally, two whale addresses, transferred 1.25 million UNI tokens worth $11.7 million to Binance. Their potential profit from selling these tokens could amount to approximately $3.5 million.

Furthermore, another address sold 472,691 UNI tokens for $4.59 million in USDC, resulting in a profit of $1.67 million. Moreover, six wallets deposited a total of 316,430 UNI tokens, equivalent to $3.16 million, into Binance.

When whales sell off substantial amounts of tokens, it can trigger a cascade effect, causing other investors to panic sell as well, leading to further declines in price. This phenomenon is often observed in volatile markets, where sudden sell-offs can result in sharp price drops.

Moreover, if the selling pressure from whales persists over an extended period, it could erode investor confidence in UNI and Uniswap, leading to a prolonged bearish trend.

This, in turn, could deter new investors from entering the market and could even prompt existing holders to liquidate their positions, exacerbating the selling pressure.

See also  Polkadot parachains might trigger another DOT move in this direction

Bulls continue to bleed

Traders also suffered immensely due to UNI’s recent correction. An analysis of coinalyze’s data by AMBCrypto indicated that in the last 24 hours, $4.4 million worth of positions had been liquidated. Out of this, $3.4 million were long positions.


Realistic or not, here’s UNI’s market cap in BTC’s terms


Traders who experienced liquidations have suffered substantial financial losses and may face emotional distress, potentially leading to reduced confidence in trading and the market.

For UNI, this event can contribute to increased price volatility and can also affect market liquidity.At press time UNI was trading at $9.32.

Source: coinalyze

Next: Ethereum is steady: Can Polkadot rally from a 20% drop in April?

READ ALSO

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  • UNI’s price declined significantly due to SEC’s actions.
  • Whales sold their holdings, while long positions got liquidated.

Shockwaves were sent across the crypto sector as Uniswap [UNI] became the target for U.S regulatory bodies. Federal regulators formally notified Uniswap of a potential lawsuit with a Wells Notice on 10th April.

UNI holders take a hit

After this news broke, the price of the UNI token plummeted. In the past 24 hours, the price of UNI fell by 16.32%. Following actions by the SEC, numerous large holders initiated the sale of their UNI tokens.

According to data from lookonchain, three major holders offloaded a total of 2.03 million UNI tokens valued at $20 million, precipitating a 17% decline in the price of UNI.

See also  98% of Tron holders are in profit, but are bears lurking?

Additionally, two whale addresses, transferred 1.25 million UNI tokens worth $11.7 million to Binance. Their potential profit from selling these tokens could amount to approximately $3.5 million.

Furthermore, another address sold 472,691 UNI tokens for $4.59 million in USDC, resulting in a profit of $1.67 million. Moreover, six wallets deposited a total of 316,430 UNI tokens, equivalent to $3.16 million, into Binance.

When whales sell off substantial amounts of tokens, it can trigger a cascade effect, causing other investors to panic sell as well, leading to further declines in price. This phenomenon is often observed in volatile markets, where sudden sell-offs can result in sharp price drops.

Moreover, if the selling pressure from whales persists over an extended period, it could erode investor confidence in UNI and Uniswap, leading to a prolonged bearish trend.

This, in turn, could deter new investors from entering the market and could even prompt existing holders to liquidate their positions, exacerbating the selling pressure.

Bulls continue to bleed

Traders also suffered immensely due to UNI’s recent correction. An analysis of coinalyze’s data by AMBCrypto indicated that in the last 24 hours, $4.4 million worth of positions had been liquidated. Out of this, $3.4 million were long positions.


Realistic or not, here’s UNI’s market cap in BTC’s terms


Traders who experienced liquidations have suffered substantial financial losses and may face emotional distress, potentially leading to reduced confidence in trading and the market.

For UNI, this event can contribute to increased price volatility and can also affect market liquidity.At press time UNI was trading at $9.32.

Source: coinalyze

Next: Ethereum is steady: Can Polkadot rally from a 20% drop in April?
Tags: CashCrashesFearingSECUniswapwarningswhales

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Memecoin Project Obama6900 (OBX) Joins the Fight Against Malaria with Long-Lasting Insecticidal Nets (LLINs)

October 28, 2023
Tezos 2023 Outlook: An Overview of Tezos (XTZ)

Tezos 2023 Outlook: An Overview of Tezos (XTZ)

November 2, 2023
UK risks regulating NFTs the wrong way, says Mintable CEO

UK risks regulating NFTs the wrong way, says Mintable CEO

October 30, 2023
Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

August 3, 2024
How to Earn Keys to Boost Your HMSTR Airdrop

How to Earn Keys to Boost Your HMSTR Airdrop

September 10, 2024

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Marathon Digital pivots to ‘full HODL’ with its $100M Bitcoin purchase

Marathon Digital pivots to ‘full HODL’ with its $100M Bitcoin purchase

July 25, 2024
Japan’s Web3 Support Continues: Tax Reforms and Solving Social Problems

Japan’s Web3 Support Continues: Tax Reforms and Solving Social Problems

August 29, 2024
Trump Bitcoin Sneakers Sell Out Quickly

Trump Bitcoin Sneakers Sell Out Quickly

August 2, 2024
Web3 Marketing Startup Spindl Launches On-Chain Ad Network

Web3 Marketing Startup Spindl Launches On-Chain Ad Network

May 23, 2024

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