Frax Finance, established in 2020, offers FRAX, a unique stablecoin in the crypto space, along with its governance token, Frax Shares (FXS), which accrues various revenues and collateral value.
Despite reaching a peak of $42.67 in April 2022, FXS has demonstrated volatility and sensitivity to market conditions.
BlockTower Capital appears to be dumping $FXS!
In the past 2 days, the VC sold 150,304 $FXS for 1.51M $USDC at ~$10.5, allegedly causing the price to drop ~11%.
They last sold $FXS just 7hrs ago and may sell the last 91,693 $FXS ($843K) soon.
Est. total profit: $961K (+69%).… https://t.co/EheQsTKN61 pic.twitter.com/deJR2w38go
— Spot On Chain (@spotonchain) February 7, 2024
Recently, Frax Finance unveiled Fraxchain, a layer 2 blockchain, slated to launch by the end of 2024. However, the price of Frax has deviated from earlier forecasts, experiencing a downturn.
On-chain data from Spotonchain reveals that BlockTower Capital has been offloading its FXS holdings. The VC firm sold 63,000 FXS for 606,456 USDC, averaging $9.63 per token, in recent hours. Over the past 26 hours, they’ve sold a total of 150,304 FXS for 1.51M USDC, averaging $10.5 per token.
FRAX FXS Token Price Reaction To Whale Movements And Token Selling
Following BlockTower Capital’s initial sale, the FXS price declined by approximately 11%. The VC still retains 91,693 FXS ($865K), suggesting the potential for further token sales. Their estimated total profit from the current FXS trade stands at $961K, marking a 69% increase.
Despite the FXS token sales exerting downward pressure on its price, Frax Finance remains committed to its vision and the impending launch of Fraxchain. The introduction of Fraxchain signifies the project’s evolution and its efforts to innovate within the decentralized finance (DeFi) ecosystem.
As the cryptocurrency landscape continues to evolve, Frax Finance’s initiatives underscore its determination to navigate market dynamics while pursuing its long-term objectives.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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