ONDO token price drops after suspected sell-off by project team
ONDO, a tokenization project backed by Coinbase and other prominent investors, saw its token price drop by 15% in a short period of time after the project team transferred 40 million ONDO to multiple exchange addresses. The transfer was reported by a Twitter user @ai_9684xtpa, who tracks the movements of ONDO tokens.
According to the tweet, two wallet addresses associated with the project’s multisig wallet sent a total of 40 million ONDO, worth $10.44 million, to Coinbase, Gate, and Bybit nine hours ago. The two addresses still hold 106 million ONDO, which accounts for 7.79% of the total circulating supply.
This is not the first time that the project team has been suspected of selling off their tokens. Three days ago, another Twitter user reported that an address that received 50 million ONDO from the project’s multisig wallet three days ago deposited 10 million ONDO to Gate and Kucoin three hours ago. This may have been the main reason for the token price drop at 09:20 this morning.
九小时前，ONDO 项目方疑似再次抛售 4,000 万枚代币，转移后币价已短时下跌 15%，现价 $0.261
— Ai 姨 (@ai_9684xtpa) January 23, 2024
The motive behind these transfers is unclear. It could be an official sell-off by the project team to cash out their profits, or it could be a provision of liquidity to support the token’s trading volume and market depth. However, some investors and traders may view these moves as a sign of bearish sentiment and lack of confidence in the project’s future prospects.
ONDO is a project that aims to improve market efficiency, transparency, and accessibility by tokenizing various financial assets, such as US Treasuries, money market funds, and real-world assets. The project is backed by Coinbase Ventures, Founders Fund, Pantera Capital, and other venture capitalists, and works with institutional partners like BlackRock and Morgan Stanley. The project recently announced its expansion to the Asia Pacific region and its partnerships with Mantle and Solana.
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