Largest Genesis Creditor Liquidates 12,100 ETH Amid Market Turbulence
Largest Genesis Creditor Liquidates 12,100 ETH Amid Market Turbulence
The largest beneficiary of the Genesis Trading bankruptcy settlement has made a massive Ethereum sell-off in the last few days. According to Arkham Intelligence, this creditor sold 12,100 ETH in total in a period of three days.
Mass Repayment Followed by Quick Liquidation
This transaction is the result of a major pay-out by Genesis Trading in its liquidation process this August. The wallet, whose address is 0x999…46E, was the largest beneficiary during the compensation to creditors.
On August 2, the wallet was credited with 114,502 Ethereum, worth $358.19 million at the time. Still, this creditor has moved to sell off a good chunk of his cut in incredibly short fashion.
Transfers to FalconX Stir Market Concerns
The sell-off began on September 23, as the wallet began transferring a portion of its Ether holdings to FalconX, one of the main institutional cryptocurrency brokerage firms. During that week, the creditor sent 12,100 ETH in total, the biggest being the 7,099 Ethereum worth $18.56 million on September 25.
Market Implications
This mass liquidation comes at a time when markets remain very unpredictable. Ethereum has moved sideways since the blistering rally between September 17 and September 21 within the tight range of $2,529 and $2,703 over the last five days. This recent sell-off by the major creditor may catalyze more selling pressure in the Ethereum market.
Background: Genesis Trading’s Bankruptcy and Repayment Process
Genesis Trading filed for bankruptcy in January following a series of calamities that hit it and its parent company, Digital Currency Group. It eventually began paying its creditors last month as part of the process for Chapter 11 bankruptcy, distributing about $4 billion worth of crypto assets. And that is where this particular creditor is getting his supplies from.
These transactions, especially if others will follow the move of these creditors, are yet to be seen in their impacts as the Ethereum market watches closely.
