Jump Trading transfers $46.44M in ETH amid sell-off, manipulation fears

Jump Trading moved 17,049 ETH from Lido, valued at $46.44M, raising market fears. Yet, data hints at a strategic liquidity setup.

Jump Trading, a market maker and trading firm, has moved 17,049 Ether worth approximately $46.44 million in preparation for an expected sell-off.

According to an X post by blockchain analyst Lookonchain, the $46.44 million Ether (ETH) claimed from the liquid staking protocol Lido has been “transferred out for sale.” 

The analyst also stated that Jump Trading currently holds a remaining 21,394 ETH worth approximately $68.58 million as the new wave of ETH sales reportedly begins.

Related: Jump likely shuttered development arm, not trading — 1000x co-host

Withdrawal from Lido

On Aug. 14, Jump Trading’s wallet address, cited by Lookonchain, began the Lido withdrawal process of its ETH holdings at 7:47 am UTC.

Since Aug. 9 at 3:09 pm UTC, the transactions recorded on Etherscan show the wallet has been dormant and now depicts a consistent pattern of ETH being moved out in batches.

Despite the concerns of a sale raised by Lookonchain, community response and Arkham Intelligence data reveal a different story entirely.

Related: Jump Trading sells another $29M Ether with $63M left to go — Is the bottom near?

Manipulation concerns

One X user commented that Jump Trading had transferred the ETH “back to their account,” while another raised concerns regarding manipulation and said the firm “just [wants] to buy more.”

According to Arkham data, the firm deposited 137.33 ETH worth $375,600 to Binance, 92,692 Tether (USDT) to Gate.io, 223,724 Circle USD (USDC) to Bybit, and 67,668 USDC to Coinbase.

These shifts in funds indicate preparation for liquidity provision for trading activities across the exchange and oppose the sell-off narrative suggested by Lookonchain.

Related: Jump Trading’s Ether dump: Smart move or sign of trouble?

Jump Trading sell-off fears

On Aug. 5, a report released by QCP Group suggested that aggressive sell-offs of ETH “from Jump Trading and Paradigm VC” could trigger a market crash.

Lookonchain’s Aug. 5 X post reinforced the Singapore-based digital asset trading group report, citing Jump Trading’s sell-off of 83,000 Wrapped Lido Staked ETH (wstETH), worth $377 million.

The firm is reportedly being investigated by the United States Commodities and Futures Trading Commission (CFTC).

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