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Trump's World Liberty Financial Sells 5.471K ETH at a Loss

Highlights:

  • Trump’s World Liberty Financial has dumped portions of its Ethereum holdings at a loss.
  • The investment firm sold 5,471 ETH for $8.01 million via three transactions.
  • WLFI ETH holdings losses have amounted to approximately $125 million.

Blockchain analytical firm Arkham Intelligence reported that Donald Trump’s family-backed World Liberty Financial (WLFI) sold portions of its Ethereum (ETH) holdings at a loss. According to the report, a wallet linked to the investment firm dumped 5,471 ETH worth $8.01 million at an average cost of $1,465 per token.

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The token sales occurred via three transactions. First, the company sold 1,000 ETH for approximately $1.47 million. Second, it dumped another 2,000 ETH valued at about $2.94 million. Finally, WLFI sold another 2,471 ETH worth $3.63 million. The investment firm dumped all these ETH tokens in the same address labelled “0xbA3……EAdeC.”

Lookonchain, a renowned crypto transactions tracker, reported similar ETH sales on its verified X handle. It added that WLFI spent about $210 million to purchase 67,498 ETH at $3,259 per token. Presently, WLFI’s ETH holdings have shed $125 million amid broader market downturns.

Ethereum Facing Increasing Selling Pressure from Whales and ETF Investors

Whales and other institutional investors have intensified their Ethereum dumping actions, sparking further price decline concerns. In one of its most recent tweets, Lookonchain reported that a whale sold 5,094 ETH for $7.5 million at $1,471 per coin. The on-chain tracker noted that this whale sold the tokens to repay a debt.

Per Lookonchain, the whale initially borrowed $80.91 million in Tether (USDT) to buy 26,235 ETH at $3,084 per token on July 5, 2024. Last month, the whale sold 25,800 ETH for $47.8 million at $1,853 to repay part of the debt. This investor has now lost $40 million on his ETH holdings.

In a separate tweet, Lookonchain revealed another whale dumped all its 10,000 ETH holdings after holding them for over 900 days. The investor realized approximately $15.71 million from the sales. In the tweet, the on-chain tracker mentioned that the investor bought the 10,000 ETH between October 4 and November 14, 2022. This whale spent $12.95 million to acquire the tokens at an average cost of $1,295 per coin.

Lookonchain stated that the whale did not sell the ETH tokens when it broke above $4,000. “But today, he exited with a $2.75 million profit (The profit at the peak was $27.6 million),” the on-chain tracker added.

Ethereum ETFs Record Net Outflows on April 8

Ethereum exchange-traded funds (ETFs) have also suffered devastating losses, worsening ETH’s slump. On April 8, the funds lost about $3.29 million, marking their fifth net outflow in April. Since this month, the funds have attracted cash inflows on only one occasion.

In March, ETH ETFs recorded gains in just three days. According to SosoValue’s data, they ended the month with net losses of about $403.37 million. The funds’ net inflows dropped from $2.82 billion in February to $2.42 billion in March. Similarly, the total value traded depreciated from $8.04 billion to $6.23 billion, while the net assets valuation dropped from $8.06 billion to $6.28 billion.

Ethereum Remains Below $1,500 with Worsening Market Metrics

At the time of writing, ETH is down 5.5% in the past 24 hours, trading at approximately $1,480. In the past week, ETH dropped by 20.6%, fluctuating between $1,417.35 and $1,907.14. This price range highlights the token’s recent struggles. Ethereum’s other extended period data recorded notable declines. For context, ETH dropped 28.7% month-to-date and 59.4% year-to-date.

As a result of the declines, Ethereum’s market capitalization has depreciated from over $400 billion in January this year to about $179.187 billion. ETH’s 24-hour trading volume also dropped 15.06% to about $27.54 billion.

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