Recent Movement of LOOM Tokens from Upbit Raises Concerns
There has been a significant movement of LOOM tokens associated with Upbit, a well-known digital asset exchange. In the past 48 hours alone, Upbit has deposited LOOM tokens to other exchanges like Binance and Bithumb over 120 times, totaling approximately 19 million LOOM tokens worth $6.76 million. Interestingly, this coincides with a 35% drop in LOOM’s price during the same period, indicating a possible market manipulation scenario.
Upbit Holds a Massive Amount of LOOM Tokens
An affiliated wallet of Upbit reportedly holds an astonishing 653 million LOOM tokens, which accounts for about 50% of the token’s total supply and is valued at around $181 million. Furthermore, Upbit recently withdrew 11,081,386 LOOM tokens worth $2.9 million. Overall, Upbit now holds 49.45% of the circulating supply of LOOM tokens.
Potential Impact on Market Liquidity and Price Stability
The concentration of LOOM tokens by Upbit and their massive transfers to other exchanges could potentially affect the market liquidity and price stability of LOOM. This suggests a possible manipulation scenario that contributes to the observed price volatility. In the past month, LOOM experienced significant price surges of over 1000% before this recent dip.
Need for Close Monitoring by Regulatory Authorities
The pattern of LOOM token movement, particularly between exchanges, raises concerns and requires close monitoring by both regulatory authorities and market participants. These activities highlight the broader dynamics at play in the cryptocurrency domain.
About LOOM and Loom Network
LOOM is the native token of Loom Network, an Ethereum-based platform that allows developers to build large-scale decentralized applications (DApps). Launched in 2017, Loom Network enhances smart contract computing power and reduces costs for certain tasks. It enables seamless integration with off-chain third-party APIs, offering developers the ability to connect their applications with external systems without changing programming languages.
Loom Network addresses scalability issues by utilizing Plasma for faster transactions. It allows Ethereum Solidity applications to run on side chains with customized consensus mechanisms. The LOOM token is essential for membership and facilitates access to all apps on the network, as well as the transfer of digital assets between Ethereum and Loom DAppChains. The zkLoom protocol ensures a secure and cost-effective blockchain environment by leveraging Ethereum’s security infrastructure.
Hot Take: Watch out for Manipulation in LOOM Market
The recent movement of LOOM tokens from Upbit to other exchanges raises concerns about market manipulation. With Upbit holding a significant portion of the total token supply, their actions could potentially impact market liquidity and price stability. Regulatory authorities and market participants should closely monitor these activities to ensure fair market conditions. Additionally, the unique features of LOOM and Loom Network make it an attractive platform for developers seeking to build decentralized applications efficiently.
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