News

Frax Finance Introduces Fraxchain Amidst FXS Token Sales

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.

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.

Related Post

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.

Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!

Image Source: 2youstockphoto/123RF // Image Effects by Colorcinch

Will Izuchukwu

Will is a News/Content Writer and SEO Expert with years of active experience. He has a good history of writing credible articles and trending topics ranging from News Articles to Constructive Writings all around the Cryptocurrency and Blockchain Industry.

Share
Published by
Will Izuchukwu

Recent Posts

Cheems Surge On BSC Network: A Rising Star With Growing Market Value

The Cheems token on the Binance Smart Chain (BSC) is gaining significant momentum, surging by…

3 hours ago

Lester Token Crashes 40% Following Official Announcement

The value of $LESTER plummeted by 40% in the past 24 hours, leaving its market…

3 hours ago

From $30K To Millions: The Wild Journey Of $Quant And Xiaohaige’s Memecoin Stunts

In a bizarre turn of events, a young live-streamer known as Xiaohaige created the memecoin…

3 hours ago

Whale “convexcuck.eth” Makes Bold $CVX Move, Nets Significant Profit Amid Price Surge

The crypto whale known as "convexcuck.eth" has made waves in the DeFi world, spending $2…

3 hours ago

$ELIZA Token Launch Marred By Insider Trading Allegations

The launch of $ELIZA, a token introduced by Andreessen Horowitz (a16z) partner @shawmakesmagic, has sparked…

3 hours ago

Cardano’s Rally Highlights Diverging Moves Among Investors

Cardano ($ADA) has been making waves in the crypto market, breaking away from the altcoin…

3 hours ago