Terraform Labs Sells 20M LDO Tokens at $2.07 Average Price, Generating Significant Profit
In a significant move for the world of cryptocurrency, Terraform Labs has sold all of its 20 million LDO tokens, according to Lookonchain. The tokens were sold at an average price of $2.07, marking a substantial profit for the company.
Terraform Labs, which was tagged by Nansen, participated in Lido Finance’s $2 million financing round in December 2020, and as a result, received 20 million LDO tokens. Lido Finance is a popular Ethereum 2.0 staking service provider that allows users to earn rewards by staking their ETH.
15.3 million LDO tokens, worth $32 million at the time, were sold on a decentralized exchange (DEX) at an average price of $2.1, while the remaining 4.7 million LDO tokens, worth $9.4 million at the time, were transferred to Binance on March 9 at a price of $2.
Terraform Labs (tagged by Nansen) sold all 20M $LDO today at an average sell price of $2.07.
15.3M $LDO ($32M at that time) sold on DEX at an average price of $2.1
4.7M $LDO ($9.4M at that time) was transferred to #Binance on May 9, when the price was $2. pic.twitter.com/EYkCxnF4VU
— Lookonchain (@lookonchain) March 12, 2023
The sale of the tokens has generated significant interest in the cryptocurrency community, with many speculating about the motivations behind Terraform Labs’ decision. Some have suggested that the company may be looking to invest in other cryptocurrency projects, while others believe that it is merely cashing in on its profits.
The Lido Finance funding round that Terraform Labs participated in attracted backing from a number of high-profile investors, including Semantic Ventures, ParaFi Capital, Terra, KR1, Stakefish, and Staking Facilities, among others. Additionally, angel investors, such as Rune Christensen of MakerDAO, Stani Kulechov of Aave, and Kain Warwick of Synthetix, also participated in the round.
Lido is a popular Ethereum 2.0 staking protocol that allows users to earn rewards by staking their ETH. The protocol has been gaining popularity in recent months, with many investors looking to capitalize on the growing interest in Ethereum 2.0.
The sale of the 20 million LDO tokens by Terraform Labs is a significant development in the world of cryptocurrency, demonstrating the growing importance of staking protocols like Lido Finance. It also highlights the potential for significant profits in the cryptocurrency market, which remains a relatively new and volatile sector.
Overall, the sale of the tokens is expected to generate significant interest in the coming days and weeks, and it remains to be seen what Terraform Labs will do with its profits. However, it is clear that the cryptocurrency market continues to attract attention from investors and is becoming an increasingly important part of the global financial landscape.
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