Altcoins
Arthur Hayes sells this Altcoin, how did the price react?
Arthur Hayes, the founder of crypto exchange BitMEX, recently made a move on an altcoin he had held since 2022. The move saw the transfer of over 230,000 GMX tokens to Wintermute Trading, reportedly making a $3 profit. .2 million dollars.
Altcoin abandoned by its largest personal holder
Blockchain research platform Lookonchain has revealed that Arthur Hayes apparently sold his GMX holdings yesterday. Hayes was the largest holder of GMX, the native token of the decentralized perpetual exchange GMX.
Throughout 2022, the founder of BitMEX spent a total of 3,383 ETH, worth $5.17 million, to purchase 200,581 GMX tokens. In 2023, Hayes spent another 60 ETH to purchase 2,328 GMX, or approximately $105,000.
From July to December 2023, Hayes withdrew 215,428 GMX tokens from centralized exchanges (CEX). By the end of 2023, he had purchased 218,337 GMX for $6.5 million from CEX and decentralized exchange (DEX) Uniswap.
As of April 7, 2024, Hayes held GMX holdings worth $9.7 million, according to Lookonchain data. The post revealed that Hayes had unlocked the 237,672 tokens and transferred them to an address linked to algorithmic crypto trading firm Wintermute Trading.
The transaction sparked rumors of a possible token sale by the former CEO of BitMEX. According to report, the average purchase cost during Haye’s accumulation phase is approximately $29.74. After the sale, Hayes’ profits would total more than $3.2 million.
GMX Investors reacted on the news, suggesting that “nothing has changed” and that the altcoin was “in that buy zone again.”
Did Arthur Hayes accept the surrender?
Crypto analyst and trader JJcycles suggested that the transaction resembled a “Hayes surrender.” The trader later speculated on why the price of GMX did not “fall” after one of his largest personal holders sold his tokens.
For the analyst, the incident resembled “the price of ETH during the FTX debacle”. Based on his perception, the trader decided to purchase more GMX tokens.
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One of the largest holders of GMX sends his suitcases to a market maker. There is speculation that he is selling, which is the most logical conclusion to draw.
My question, why isn’t the price going down?
This looks a bit like the price of ETH during the FTX debacle.
I buy more.$GMX pic.twitter.com/jZi91vIghT– JJcycles (@JJcycles) April 8, 2024
In a later article, the analyst clarified what he meant with his previous statement. According to him, the capitulation of GMX resembles that of ETH in 2023.
As reported According to NewsBTC, the number of Ethereum traders selling at a loss increased around August 2023. The ETH price rebounded after the capitulation and has since continued its upward trajectory.
According to analyst charts, GMX appears to be showing an ascending triangle pattern at the time of writing, similar to the one made by ETH during its capitulation. For the trader, this suggests that GMX could begin an upward trajectory like ETH.
GMX Price Reaction
The GMX token is displayed red numbers in most time frames, as it is currently 55.5% below its all-time high (ATH) of $91.07. The token records a price decline of 7.9%, 28.9% and 48.9% over the weekly, monthly and yearly periods.
After Hayes’ trade was announced, the price fell from a price range between $40.8 and $40.7 to $37.1, plunging 9% in just one hour.
Nonetheless, the altcoin quickly began to recover from the initial decline. At the time of writing, GMX is trading at $40.47, down 1% from 24 hours ago. Notably, the token’s market activity soared 467.6% over the past day, with a daily trading volume of $54.77 million.
GMX performance in the 3-day chart. Source: GMXUSDT on Tradingview
Featured image from Unsplash.com, chart from TradingView.com