Arthur Hayes Sells GMX Tokens
Arthur Hayes, the founder and former CEO of BitMEX, recently unstaked and sold over 237,000 GMX tokens, the native tokens of the GMX perpetual crypto futures decentralized exchange. He had acquired these tokens in March 2022.
Transfer to Wintermute
- Hayes transferred the GMX tokens to a new address associated with Wintermute, a crypto algorithmic trading firm.
- This move sparked rumors of a potential sale, with estimates suggesting Hayes could have made profits amounting to $3.2 million.
Hayes’ Token Holdings
- From March to December 2022, Hayes purchased 218,337 GMX tokens valued at $6.5 million from various exchanges, including Uniswap, at an average price of $29.74 per token.
- Over the years, his token holdings grew to a total of 237,672 GMX.
Impact on Token Value
- The sale of GMX tokens worth $9.7 million in a single transaction by Hayes caused the token’s value to drop by nearly 10% to $37.
- However, the token’s value saw a slight recovery and was trading at $39 at the time of the latest data.
Transfer to Crypto Exchanges
- The Wintermute-associated address also transferred around 41,000 GMX tokens, valued at $1.68 million, to centralized exchanges like Binance, OKX, and Bybit.
- Binance received 25,000 tokens, while Bybit and OKX each received 8,000 tokens.
Hayes’ Perspective on USDe
Hayes recently shared his thoughts on USDe, a synthetic dollar stablecoin built on the Ethereum blockchain by Ethena Labs.
Comparison with TerraUSD (UST)
- The launch of USDe sparked concerns about potential risks similar to the TerraUSD (UST) incident, which caused a significant market downturn.
- USDe offers a higher annual percentage yield of 27.6%, surpassing the 20% yield provided by UST before its collapse.
Risk Assessment
- Hayes addressed community concerns by highlighting the differences in the yield generation models of both stablecoins.
- He expressed confidence that USDe’s structure and approach make it less likely to face the challenges encountered by UST.
Hayes Sells GMX Holdings
Hayes began accumulating GMX in March 2022 and remained the number one personal address holding the tokens until today. Between March and December 2022, he bought 218,337 GMX worth $6.5 million from centralized exchanges and decentralized platform Uniswap at the token’s then-average price of $29.74.
After staking the tokens for two years and accumulating rewards, Hayes’ stash grew to 237,672 GMX. The cryptocurrency’s value has also risen and was changing hands at $41 as of the early hours of Monday.
However, Hayes’ sale of the $9.7 million worth of GMX tokens in one transaction dragged its value down almost 10% to $37. Although the asset had recovered slightly at the time of writing and was trading at $39, it is still down 3% in the past 24 hours, per data from CoinMarketCap.
It is worth noting that the Wintermute-linked address has transferred roughly 41,000 GMX worth $1.68 million to centralized crypto exchanges Binance, OKX, and Bybit. Binance received 25,000, while Bybit and OKX received 8,000 tokens each.
Hayes’ Thoughts on USDe
Hayes’ GMX sale comes less than a month after the American entrepreneur expressed optimism about Ethena Labs’ Ethereum-based synthetic dollar stablecoin, USDe.
The launch of USDe in February raised concerns about a repetition of the TerraUSD (UST) incident, which wiped $40 billion off the crypto market with its collapse. While both stablecoins share some similarities, the former offers an annual percentage yield of 27.6%, higher than the 20% provided by UST before its demise.
The BitMEX’s founder sought to address the fears of the crypto community by explaining that both stablecoins used different yield generation models and USDe was unlikely to meet the same fate as UST.
Hot Take: Stay Informed and Secure Your Crypto Investments
As a crypto investor, it is essential to stay informed about market developments and key players’ actions, such as Arthur Hayes’ recent sale of GMX tokens. Make informed decisions and secure your investments in the ever-evolving world of cryptocurrencies.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.