Jump Trading is making significant crypto transactions involving large amounts of USDC stablecoin and is expected to cash out $440 million, notes onchain sleuth Lookonchain.
The firm withdrew approximately $606 million in USDC from Binance. Following the withdrawal from Binance, Jump Trading deposited $440 million in USDC into Coinbase.
Sharing a post on social media platform X (formerly Twitter) Lookchain went on to add the deposit to Coinbase is expected to be cashed out, although the reasons behind this strategy remain speculative.
Jump Trading cashed out 440 million USD?
Since Jump Trading started selling $ETH on July 24, they withdrew 606M $USDC from #Binance and deposited 440M $USDC to #Coinbase.
The $USDC deposited into #Coinbase is likely to be exchanged for USD at 1:1.https://t.co/ZL6Tew6VrQ pic.twitter.com/X9rDIAhneE
— Lookonchain (@lookonchain) August 6, 2024
The shift from Binance to Coinbase could be driven by a desire to mitigate regulatory risks or take advantage of more favourable trading conditions and liquidity options available on Coinbase.
USDC is a stablecoin, designed to maintain a 1:1 value with the U.S. dollar.
Jump Dumps ETH, Triggers Sell-Off
On Monday, the crypto market experienced a massive drawdown. Jump Crypto, the crypto firm of Jump Trading liquidated huge amounts of Ethereum to centralized exchanges (CEXs) such as Binance, OKX, Bybit, Coinbase, and Gateio, as the crypto market saw a sell-off.
Data from Spot On Chain, a blockchain analytics platform, highlights Jump Crypto moved 17,576 ETH, valued at approximately $46.78 million, to various CEXs.
QCP Group, a Singaporean digital asset trading firm, directly linked the crash to aggressive selling by Jump Trading. The sell-off has sent shockwaves through the crypto ecosystem, causing major digital assets like Bitcoin and Ethereum to suffer double-digit losses.
On Tuesday, the crypto market rebounded modestly, Bitcoin rose 3%, trading at about $55,609 as of 4:30 UTC, but is down 17% over the past week. Similarly, Ether gained 3%, reaching $2,494, though it has fallen 25% in the last week.
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