DeFi Treasury Shake-Up: The Protocol’s Treasury Drops Below $90M After Major Crypto Movements
Over $250 million in Ethereum, wrapped Bitcoin, and other Ethereum-based assets were moved from World Liberty Financial‘s multi-sig wallet on Monday, according to the Donald Trump-affiliated DeFi protocol. However, the company says it isn’t selling the assets despite the market’s erratic swings.
We’re making routine movements of our crypto holdings as part of regular treasury management, and payment of fees and expenses and to address working capital requirements. To be clear, we are not selling tokens—we are simply reallocating assets for ordinary business purposes.
the protocol
According to Arkham Intelligence’s portfolio archiving tool, the protocol’s treasury had over $400 million in assets on February 2. Today, its total assets are less than $90 million.
$168M in ETH and $64M in wBTC Outflow: Is a Sell-Off Wave Coming?
Nearly $168 million and $64 million were outflows on Monday afternoon from Ethereum and Wrapped Bitcoin, also known as WBTC, a 1:1 backed Bitcoin alternative that trades on Ethereum, respectively. The majority of Ethereum outflows were sent to a wallet that Arkham identified as Coinbase Prime, the full-service brokerage for institutional-grade investors on the American cryptocurrency exchange. This led to rumors that the platform might be selling, even though the majority of assets were moved to unlabeled addresses.
The platform has now assured its followers twice that it is not selling tokens, the most recent of which was on January 14. Moreover, in celebration of Trump’s inauguration as the 47th President of the United States, the project thrilled the cryptocurrency community a week later by acquiring over $100 million worth of cryptocurrency assets, with $47 million in Ethereum and Wrapped Bitcoin standing out.
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