Attention: 6 Altcoins that are Short-Sold and Have a Selloff Risk!

As regulatory concerns continue in the Bitcoin and altcoin market, panics of short selling have begun in many cryptocurrencies. Also, the fact that some whales send crypto money to exchanges makes us think about whether there will be a selloff. Here are the details…

Altcoins on the move: BABYDOGE, BNB, USDTs on the move

Spot On Chain spotted a massive whale address that just issued 2 trillion BABYDOGE tokens just hours ago. The Whale address is gradually converting tokens to Binance Coin (BNB). The address has currently traded 54 trillion BABYDOGE tokens for 329 BNB (approximately $70,200). However, the address still holds approximately 1.98 trillion BABYDOGE tokens worth about $2.58 million. Also, Lookonchain shows that entrepreneur Justin Sun has withdrawn 20 million USDT from Aave in a recent transaction and transferred approximately 20.4 million USDT to Binance. On the other hand, Venus Protocol, a lending agreement on BNB Chain, made an official announcement on June 12.

The core team of BNB Chain has confirmed that they are ready to assume the BNB position on Venus should the BNB price reach the liquidation threshold. Protocol has set aside $30 million to return account credits. He will allocate additional funds if necessary. Venus Protocol assures the community that no BNB will be released, thus preventing any potential loss. Mindao, the founder of the DeFi protocol dForce, expressed concern about the actions of the Curve founder.

According to a document published by Mindao, Curve’s founder has invested in Aave tokens, which represent more than 33 percent of CRV circulation. This led to the lending of $71 million in stablecoins. Mindao highlighted the high risk associated with such actions, especially during market downturns and liquidity contractions. Because Aave V2 has no deposit limits, it becomes difficult to control collateral exposure. Mindao suggests increasing the USDT borrowing cost to deter leverage and short selling strategies.

Whales in action

In another interesting development, Lookonchain data shows that a giant whale address starting with 0x494a sold 1.08 million ARB tokens, resulting in a loss of $276,000. This address had previously purchased 1.08 million ARB altcoins at an average price of $1.25 on June 2 and invested a total of $1.34 million. The timing of this sale coincided with the trading activity of Andrew Kang, co-founder of Mechanism Capital, which sold 217,000 ARB tokens for $0.97 and made an estimated loss of $280,000.

MetaSleuth tracking data reveals that attackers of interest-free lending protocol Sturdy Finance received initial funds from Tornado Cash to carry out contract attacks. The stolen funds of 442.60 ETH (approximately $800,000) were first transferred to Tornado Cash, with a small portion sent to ChangeNOW. The attack on Sturdy Finance seems to have taken place through price manipulation and resulted in significant losses.

According to Lookonchain tracking, in the last 24 hours, anonymous giant whales deposited 25,000 stETH (approximately $43 million) in Aave, then lent 35 million USDT and transferred the funds to Binance. Additionally, the Whale Alert trace found that 46,908,172 MATIC tokens (approximately $29.64 million) for staking were transferred from an unknown wallet to the Polygon network. Finally, the Shiba Inu (SHIB) market has been through a turbulent period with large investors or whales selling trillions of SHIB tokens. According to IntoTheBlock, influential players have reduced their holdings by a staggering 3 trillion SHIB tokens since the previous Friday.