Cryptocurrency whales are surprisingly selling Bluzelle (BLZ) at a loss, raising concerns about the future of the altcoin project. Here are the details…
What is the purpose of altcoin whales?
Known for their significant impact on the crypto asset market, cryptocurrency whales are traders who are often able to stay away from losses even during downtrends. They are famous for their ability to manipulate prices through large trades and strategic moves. However, a recent development has caught the attention of the crypto community. It looks like some whales are defying conventional wisdom by selling Bluzelle (BLZ) at a loss. Spot On-Chain, a data provider, recently published a report that sheds light on this surprising scenario. According to their findings, a particular whale address identified as 0xE8F deposited a staggering 10 million BLZ tokens to Binance.
https://twitter.com/spotonchain/status/1712311596238942251
At the time, the value of this transaction was approximately $1.16 million, with each BLZ coin trading at $0.116. Spot On-Chain’s report goes further, revealing the whale’s trading history with BLZ. Just 15 days earlier, on September 26, the same address had purchased 24.76 million BLZ from Binance at an average price of $0.186 per altcoin. This transaction was valued at $4.61 million. The whale currently holds 14.76 million BLZ, which is equivalent to approximately $1.71 million. However, if the whale decides to sell these assets, it will suffer an estimated loss of $1.74 million. This would result in a significant 37.7 percent decrease in value. This surprising move raises questions about the motivations behind these actions.
Multiple whales on the move
The unique activities of 0xE8F are not isolated events. Spot On-Chain’s report states that another whale named 0x02f is also actively depositing BLZ tokens to Binance. These two whales deposited a total of 22.162 million BLZ in the last two days, which is worth approximately $2.74 million. This BLZ token influx into Binance coincides with a noticeable 13 percent drop in the price of BLZ over the same period. The real question is: Why are these whales dumping BLZ at a loss?
Crypto enthusiasts and analysts are baffled by this unexpected behavior, especially considering whales’ reputation for making strategic moves that protect their assets. While the crypto community is watching these developments closely, it underlines the unpredictability of the crypto asset market. It’s a reminder that even the biggest players are not immune to losses in the cryptocurrency world. The coming days will likely provide more information about the motivations behind these unusual actions and their potential impact on the future of the BLZ.
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